Question

question 1 of 10
sonja is using the tvm solver on her graphing calculator as shown below to determine how much she has to invest now in a savings account earning compound interest to have $15,100 in a certain number of years.
n=12
i%=2
pv=
pmt=0
fv=15100
p/y=1
c/y=4
pmt: end begin
according to what sonja has entered into the tvm solver, with what frequency will the interest in the savings account be compounded?
a. annually
b. monthly
c. semiannually
d. quarterly

Explanation:

In TVM Solver settings, the value of $C/Y$ (compounding periods per year) indicates the compounding frequency. Here, $C/Y=4$, which means interest is compounded 4 times per year, corresponding to a quarterly frequency.

Answer:

D. Quarterly