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Joseph just received an inheritance of $35,775 from his great aunt. He plans to invest the funds for retirement. If Joseph can earn 4.75% per year with quarterly compounding for 32 years, how much will he have accumulated?
a. $237,416.b. $71,550.c. $184,622.d. $162,113.

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facundobuzzetti

Answer:

FV= $162,113.25

Explanation:

Giving the following information:

Initial investment= $35,775

Interest rate= 0.0475/4= 0.011875

Number of periods=  32*4= 128

To calculate the future value, we need to use the following formula:

FV= PV*(1+i)^n

FV= 35,775*(1.011875^128)

FV= $162,113.25

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