Answer:
The future value is $3793.776
Step-by-step explanation:
Given
[tex]PV = 2940[/tex] --- present value
[tex]r = 3.2\%[/tex] --- rate
[tex]t = 8[/tex] --- time
[tex]n = 4[/tex] --- quarterly
Required
Determine the future value
This is calculated using:
[tex]FV = PV(1 + \frac{r}{n})^{nt[/tex]
So, we have:
[tex]FV =2940 * (1 + \frac{3.2\%}{4})^{4*8[/tex]
[tex]FV =2940 * (1 + \frac{3.2}{400})^{32[/tex]
[tex]FV =2940 * (1 + 0.008)^{32[/tex]
[tex]FV =2940 * (1.008)^{32[/tex]
[tex]FV =2940 * 1.2904[/tex]
[tex]FV =3793.776[/tex]
