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FV = PV(1 + (i/n) )^(n*t)

Part a

PV = $500 ; i = 3.75% = 0.0375 ; n = 4 (since it is compounded quarterly) ; t = 1 year

FV = (500)(1 + (0.0375/4) )^(4*1) = (500)(1 + 0.009375)^4 = (500)(1.009375)^4 = 519.01532

FV = $519.02

Part b

t = 2 years

FV = (500)(1 + (0.0375/4) )^(4*2) = (500)(1 + 0.009375)^8 = (500)(1.009375)^8 = 538.7538

FV = $538.75

Part c

t = 8 years

FV = (500)(1 + (0.0375/4) )^(4*8) = (500)(1 + 0.009375)^32 = (500)(1.009375)^32 = 673.98683

FV = $673.99

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