Answer:
The answer is $3,634.78
Explanation:
There are 4 quarters in a year.
Number of periods (N) = 28 periods (4 x 7) years
Interest rate per quarter (I/Y) = 0.57percent.
Present Value (PV) =$3,100
Using a Financial calculator:
N= 28; I/Y = 0.5; PV= -3,100; FV= ?
= $3,634.78
The $3,100 that will be deposited today will have a fave value of$3,634.78 in 7 years.
