Answer:
[tex]FV= 3200(1+\frac{0.026}{3})^{3(6)}=3200 (1.008667)^{54}= 50994.590[/tex]
Step-by-step explanation:
For this case we can use the formula for the future value with compound interest given by:
[tex]FV= P (1+\frac{r}{n})^{nt}[/tex] (1)
For this case since the interest is compounded quarterly we have 3 periods each year, since we have 3 quarters in a year.
r represent the rate =0.026
t = 6 represent the number of years
P = 3200 represent the amount invested at the begin
If we apply the formula (1) we got:
[tex]FV= 3200(1+\frac{0.026}{3})^{3(6)}=3200 (1.008667)^{54}= 50994.590[/tex]
So then the balance after 6 years would be approximately 50995 with the conditions provided.
