Question

question 6 of 10 orlando is using the tvm solver on his graphing calculator as shown below to determine the future value of $3600 after it has earned compound interest for a certain number of years. n=12 i%=6 pv=-3600 pmt=0 fv=0 p/y=1 c/y=4 pmt: end begin according to what orlando has entered into the tvm solver, for how many years will the $3600 earn compound interest? a. 3 b. 12 c. 6 d. 2

Explanation:

Step1: Define key TVM variables

$N$ = total compounding periods, $P/Y$ = periods per year

Step2: Calculate total years

$\text{Years} = \frac{N}{P/Y} = \frac{12}{4} = 3$

Answer:

A. 3