An investment of $10 000 to be invested for a period of 5 years and compounded quarterly at 3.75% p.a. will have a future value closest to which of the following: A $10 480 B $12 020 C $12 050 D $20 900 E None of the above.

Investment definition is an asset acquired or invested in to build wealth and save money from the hard earned income or appreciation. Investment meaning is primarily to obtain an additional source of income or gain profit from the investment over a specific period of time.

Given:

P= $10 000

R= 3.75%

T= 5 years

n=4

Now,

Future Value= P[tex](1+r/n)^{nT}[/tex]

=1000[tex](1+0.0375/4)^{4.5}[/tex]

= 1000[tex](1+0.0375/4)^{20}[/tex]

=1000* 1.20517

= 12051.8

= $ 12050

Hence, the future value is $ 12050.

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An investment of $10 000 to be invested for a period of 5 years and compounded quarterly at 3.75% p.a. will have a future value closest to which of the following: A $10 480 B $12 020 C $12 050 D $20 900 E None of the above.​

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An investment of $10 000 to be invested for a period of 5 years and compounded quarterly at 3.75% p.a. will have a future value closest to which of the following: A $10 480 B $12 020 C $12 050 D $20 900 E None of the above.