Answer:
The correct answer is - $1977.7913.
Step-by-step explanation:
Given:
Maturity value = 2000
time = 3 years
rate = 6% compounded quarterly
Solution:
If A is the Maturity Value, P is the Principal Amount, r is the Rate of Return, n is the Frequency And t is the Time in Year then the Formula for Compound Interest would be -
A = P(1+r/n)^nt
Putting the given values in formula,
2000 = P*(1 + (0.06/4))^(3*4)
P = 2000/(1 + (0.06/4))^(3*4)
Thus,
P = $1977.7913
