Find the maturity value of a $15,000 investment with an interest rate of 6%, compounded quarterly for five...

Question

10. Find the maturity value of a $15,000 investment with an interest rate of 6%, compounded quarterly for five years. $22,127.56 $21,435.67 $23,896.21 $20,202.83

SnapAndSolve AI · Accepted Answer

To find the maturity value of the investment, we use the formula for compound interest: A = P(1 + r/n)^(nt), where:

P is the principal amount ($15,000).
r is the annual interest rate (0.06).
n is the number of times interest is compounded per year (4 for quarterly).
t is the number of years the money is invested (5).

Plugging in the values:

A = 15000(1 + 0.06/4)^(4*5)

A = 15000(1 + 0.015)^(20)

A = 15000(1.015)^(20)

A ≈ 15000 * 1.34885

A ≈ 20232.75

The closest option to this value is $20,202.83.

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Find the maturity value of a $15,000 investment with an interest rate of 6%, compounded quarterly for five...

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