Answer:
you can determine the future value of the $14,000 investment at a 15% interest rate compounded quarterly for 10 years.
Step-by-step explanation:
To find the future value of an investment of $14,000 at 15% interest compounded quarterly for 10 years, you can use the compound interest formula provided:
A = P(1 + r/n)^(nt)
Where:
A = Future Value
P = Principal amount ($14,000)
r = Annual interest rate (15% or 0.15)
n = Number of compounding periods per year (quarterly, so n = 4)
t = Number of years (10 years)
1. **Plug in the Values:**
- Substitute the values into the formula:
A = $14,000 * (1 + 0.15/4)^(4*10)
2. **Calculate the Future Value:**
- Simplify the formula and compute the future value:
A = $14,000 * (1.0375)^40
3. **Final Calculation:**
- Calculate the value to find the future amount after 10 years with quarterly compounding.
By following these steps and performing the calculations, you can determine the future value of the $14,000 investment at a 15% interest rate compounded quarterly for 10 years.
