Assume you make a deposit of $7,500 now into a saving account that pays 12% per year, compounded quarterly. If you want to know the total amount after 2 years, the value of interest rate (i) you should use in the F/P factor is: Select one: O a. 3% b. 4 % c. 24% d. 12 %

Assume you make a deposit of $7,500 now into a saving account that pays 12% per year, compounded quarterly. If you want to know the total amount after 2 years, the value of interest rate (i) you should use in the F/P factor is: Select one: O a. 3% b. 4 % c. 24% d. 12 %

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 22PROB

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Question

Assume you make a deposit of $7,500 now into a saving account that pays 12% per year,
compounded quarterly. If you want to know the total amount after 2 years, the value of interest
rate (i) you should use in the F/P factor is:
Select one:
а.
3%
b. 4 %
с. 24%
d. 12 %

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