Financial Technology Center - School of Business - Central Connecticut State University

You deposited $1,000 in a savings account that pays 8 percent interest, com­pounded quarterly, planning to use it to finish your last year in college.  Eighteen months later, you decide to go to the Rocky Mountains to become a ski instructor rather than continue in school, so you close out your account.  How much money will you receive?

Financial calculator solution:

Inputs: 

 N =1.5*4

 I = 8/4

 PV = -1000

 PMT = 0

Output:  FV = $1,126.16 » $1,126.