If XYZ invests $3,300 today and $3,300 in 1 year in an account that has an expected annual return of 15.6 percent, compounded quarterly, then how much money will she have in her account in 3 years?
She will have $ 9,704.42 in her account in 3 years.
Future value of money is calculated as follows: | |||
Quarter | Investment | Future value of 1 | Future value of investment |
a | b | c=((1+(0.156/4))^(12-a)) | d=b*c |
0 | $ 3,300 | 1.582656154 | $ 5,222.77 |
4 | $ 3,300 | 1.358076957 | $ 4,481.65 |
Total | $ 9,704.42 |
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