Question 1102878: Three and a half years ago, Chris invested $10,000 in a retirement fund that grew at the rate of 9.54%/year compounded quarterly. What is his account worth today? (Round your answer to the nearest cent.)
Answer by Theo(13342)   (Show Source):
You can put this solution on YOUR website! f = p * (1+r)^n
f is the future value
p is the present value
r is the interest rate per time period.
n is the number of time periods.
in your problem.
f = what you want to find
p = 10,000
r = 9.54% / 100 = .0954 / 4 compounding periods per year = .02385 per quarter.
n = 3.5 years * 4 compounding periods per year = 14 quarters.
equation becomes f = 10,000 * (1 + .02385) ^ 14
solve for f to get f = 13,909.40923 = 13,909.41 rounded to the nearest penny.
10,000 is entered into the formula without the comma.
comma is added to the output to make it more readable.
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