Lux Investing

determine the future value of a $5500 invest that is compounded quarterly for 6 years at 5% interest.?

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1. Answer: $7410.43 ====================== Use the following expression to calculate future value: A(1 + r/n)^nt A = amount invested r = interest rate n = times per year which interest is compounded t = # of years money is invested A(1 + r/n)^nt = 5500(1 + 0.05/4)^(6*4) = 5500(1.0125)^24 = $7410.43