Compound Interest Calculator

Calculate the Future Value of a Quarterly Compounded Account

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Question

If you deposit $1,500 into an account paying 6% per year, compounded quarterly, how much is in the account after 60 months?

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Explanations

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A. B. C. D. E.

C

There are 20 quarters in 60 months (60 divide 3 =). On the BAII Plus, press 20 N, 6 divide 4 = I/Y, 1500 PV, 0 PMT, CPT FV. On the HP12C, press 20 n, 6 ENTER

4 divide i, 1500 PV, 0 PMT, FV. Note that the answer will be displayed as a negative number. Make sure the BAII Plus has the value of P/Y set to 1.