What is the Future Value of $5,000 deposited today earning interest at 10%, compounding quarterly for 5 years?

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What is the Future Value of $5,000 deposited today earning interest at 10%, compounding quarterly for 5 years?

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We have been provided with the information

Amount deposited today = $ 5,000

earning interest at 10%,

So r =10% for the year

so for the quarter it will be 10 /4

=2.5%

compounding quarterly for 5 years

n = 5 years

years have 20 quarters

We put the figure in the formulla as follow

deposited today earning interest at 10%, compounding quarterly for 5 years

=FV = $ 5000 ( 1+ 2.5%)20

FV= 5000 (1.025)20

FV=5000 *1.6386

FV=8193.0822

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