Muhammad has $15,000.00 in an investment account that pays 2.959% compounded quarterly. How many quarters from now will he have $17,002.24 in his account? (Round your answer to the nearest integer - it should be very close to one!)
Muhammad has $15,000.00 in an investment account that pays 2.959% compounded quarterly. How many quarters from now will he have $17,002.24 in his account? (Round your answer to the nearest integer - it should be very close to one!)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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5. the math of interest. please indicate if you are unsure or totally sure about the answer
Transcribed Image Text:Muhammad has $15,000.00 in an investment account that pays 2.959% compounded quarterly. How many
quarters from now will he have $17,002.24 in his account? (Round your answer to the nearest integer - it should
be very close to one!)
a. 20
O b. 21
O
C. 19
d. 13
e.
17
Certainty OC=1 (Unsure: <67%) OC=2 (Mid: >67%) OC=3 (Quite sure: >80%)
Expert Solution
Step 1
The concept of time value of money will be used here.
As per the concept of time value of money the worth of money changes with passage of time. This is because money has the power and the ability to earn interest.
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