Pinnacle Industrial Group deposits $850,000 into a high-yield corporate bond fund with a stated annual rate of 7.35%, compounded quarterly for 8 years. However, after 4 years, the company makes an additional deposit of $325,000 into the same fund at the same rate and term. Calculate the total future value of both deposits combined and the total interest earned.
Correct Answers
future_value
null
interest_earned
null
Step-by-Step Solution
Compound Interest Formula: FV = P × (1 + r/m)^(m×t) Principal (P): $850,000.00 Annual Rate: 7.35% Compounding: quarterly (m = 4) Total periods (n): undefined Rate per period (r/m): 1.8375% FV = $850,000.00 × (1 + 1.8375%)^undefined FV = $850,000.00 × NaN FV = $NaN Interest Earned = FV − Principal = $NaN − $850,000.00 = $NaN