Question 1088938
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.


time period could be years, months, days, weeks.
it's the time period that the interest that you earn is compounded.


rate = annual rate divided by compounding periods per year.
n = the number of years times the compounding periods per year.


rate = rate percent divided by 100.


in your problem.


p = 3000
f = what you want to find.
r = 4.8% / 4 / 100 = .012 per quarter
n = 3 * 4 = 12 quarters



the formula becomes:


f = 3000 * (1 + .012) ^ 12 = 3461.683873


use a time value calculator and you'll get the same thing.


one such calculator can be found at <a href = "https://arachnoid.com/finance/" target = "_blank">https://arachnoid.com/finance/</a>


you enter:


present value = 3000
future value = 0 or blank
number of periods = 3 * 4 = 12
payment amount = 0
interest rate per time period % = 4.8 / 4 = 1.2
payment at end


you make your entries and then select FV and the calculator tells you what the future value is.


it will tell you that the future value is -3461.68.


this agrees with what i calculated above.


note that the calculator uses rate percent rather than rate.
this means 4.8/4 instead of 4.8 / 400
note that future value will show up as negative since present value was entered as positive.


i would have shown you a picture but my website is down at this time.


you can do the calculations yourself and see what i mean.