SOLUTION: Please help with this math problem You deposit $10,000.00 in a account that pays 5% interest compound quarterly. A) Find the future value after 1 year. _____ B) Use the future

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Question 322323: Please help with this math problem
You deposit $10,000.00 in a account that pays 5% interest compound quarterly.
A) Find the future value after 1 year. _____
B) Use the future value formula for simple interest to determine the effective
annual yeild. _________

Answer by mananth(16946) About Me  (Show Source):
You can put this solution on YOUR website!
FV = P(1+rt/n)^nt
=10000*(1+0.05/4)^4
=10,509.45
..
effective annual yield = 509.45 /100
=5.09%