Question

In 1972, your grandfather put N$2000 into a special trust to be paid to a future grandchild (you) in the year 2022. How much will this trust be worth in the year 2022 if it has been earning 12% interest compounded quarterly? (8)

Answer 1

$$2000\times(1+\frac{0.12}{4})^{40}=6524.1$$