Determine the amount of money in a savings account at the end of 3 years, given an initial deposit of $9,000 and an annual interest rate of 4 percent when interest is compounded:
Use Appendix Afor an approximate answer, but calculate your final answer using the formula and financial calculator methods.(Do not round intermediate calculations. Round your final answers to 2 decimal places.)Future value:

a. Annually

b. Semiannually

c. Quarterly

The correct answer for option (a) is $10,124, option (b) is $10,135 and option (c) is $10,141.

Explanation:

According to the scenario, the given data are as follows:

Initial amount (p) = $9,000

Annual interest rate (r1)= 4%

Semi annual interest rate (r2) = 4% / 2 = 2%

Quarterly interest rate (r3) = 4% / 4 = 1%

Time period ( annual) (n1)= 3 years = 3

Time period ( semi-annual) (n2) = 3 × 2 = 6

Time period ( quarterly) (n3) = 3 × 4 = 12

So, we can calculate future value by using following formula:

A= P ( 1 +r)^n

(a). Putting the value in the formula

A= P ( 1 +r1 )^n1

= $9,000 ( 1 + 4%)^3

= $9,000 x (1.04)^3

= $10,124

(b). Putting the value in the formula

A= P ( 1 +r2 )^n2

= $9,000 ( 1 + 2%)^6

= $9,000 x (1.02)^6

= $10,135

(c.) Putting the value in the formula

A= P ( 1 +r3 )^n3

= $9,000 ( 1 + 1%)^12

= $9,000 x (1.01)^12

= $10,141

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1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

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