Financial Maths, SMB-017

Albert invests $3000 and earns interest at 4% per annum, compounded quarterly.

What is the future value of Albert's investment after 2.5 years? (3 marks)

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`$3313.87`

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`text{Annual interest rate = 4%}`

`text(Quarterly interest rate) \ = frac(4%)(4)=1text{%}`

`n = 2.5 xx 4 = 10`