Answer :
Answer:
The Proceeds of maturity after 10 years is $1613.4
Step-by-step explanation:
Given as :
The maturity value = $ 6000
The rate applied at 6 % compounded quarterly
The Time period = 4 years
Now,
Amount = Principal × [tex](1+\dfrac{\textrm Rate}{4\times 100})^{\textrm 4\times Time}[/tex]
Or, Amount = 6000 × [tex](1+\dfrac{\textrm 6}{4\times 100})^{\textrm 4\times 4}[/tex]
Or, Amount = 6000 × [tex](1.015)^{16}[/tex]
Or, Amount = 6000 × 1.2689
∴ Amount = $ 7613.4
So, The proceeds after 10 years = $ 7613.4 - $ 6000 = $ 1613.4
Hence The Proceeds of maturity after 10 years is $1613.4 Answer