Question 1201176
5.75% per year compounded quarterly = 1.4375% per quarter.
growth factor per quarter = that / 100 + 1 = 1.014375.
present value is 4000.
future value in 4 years = 4000 * 1.04375 ^ 16 = 5026.1632
future value in 6 years = 4000 * 1.04375 ^ 24 = 5634.104312
future value in 8 years = 4000 * 1.04375 ^ 32 = 6315.579128
the equation can be graphed as shown below:
<img src = "http://theo.x10hosting.com/2023/032302.jpg">
time periods are in quarters of a year.
numberof years has to be multipled by 4.
interest rate per year needs to be divided by 4.