Future Value Calculation with Quarterly Compounding

Maria invested $10,000 in a savings account that earns an annual interest rate of 6% compounded quarterly. How much money will she have in the account after 5 years?

To find the future value of the investment, you can use the formula:

$$ FV = PV imes (1 + r/n)^{nt} $$

where:

• $$ FV $$ = future value
• $$ PV $$ = present value
• $$ r $$ = annual interest rate (decimal)
• $$ n $$ = number of compounding periods per year
• $$ t $$ = number of years