Calculate the future value of $5,000 earning 8% interest compounded quarterly for 9 years. (Round your answer to two decimal places.)

To calculate the future value (FV) of an investment compounded quarterly, we can use the formula:

\[
FV = P \left(1 + \frac{r}{n}\right)^{nt}
\]

Where:
- $ P $ is the principal amount ($5,000)
- $ r $ is the annual interest rate (8% or 0.08)
- $ n $ is the number of times the interest is compounded per year (quarterly means $ n = 4 $)
- $ t $ is the number of years (9 years)

Now, let's plug in the values:

\[
FV = 5000 \left(1 + \frac{0.08}{4}\right)^{4 \times 9}
\]

I'll calculate this step by step.The future value of $5,000 earning 8% interest compounded quarterly for 9 years is approximately **$10,199.44**.

Would you like more details on how the calculation works or have any questions?

Here are 5 related questions you might find useful:
1. What is the effect of increasing the interest rate on the future value?
2. How does the number of compounding periods per year affect the future value?
3. What if the interest were compounded monthly instead of quarterly?
4. How does the future value change if the investment period is longer or shorter?
5. Can this formula be applied for continuous compounding?

**Tip:** The more frequently interest is compounded, the higher the future value due to more frequent accumulation of interest.

Learn how to calculate the future value of $5,000 with 8% interest compounded quarterly over 9 years. This step-by-step guide uses the future value formula to demonstrate how interest compounds and grows over time. Suitable for students in Grades 10-12.

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