Your 6 year investment of $40,000 at 14% compounded quarterly is worth how much now?

To calculate the future value of an investment compounded quarterly, you can use the formula:

FV = P * (1 + r/n)^(nt)

where:

• FV is the future value of the investment
• P is the principal amount (the initial amount of money)
• r is the annual interest rate (in decimal form)
• n is the number of times that interest is compounded per year
• t is the time the money is invested for in years

Given in the problem:

• P = $40,000
• r = 14% = 0.14
• n = 4 (since interest is compounded quarterly)
• t = 6 years

Substitute these values into the formula:

FV = $40,000 * (1 + 0.14/4)^(4*6)

Now, calculate the expression inside the parentheses:

= $40,000 * (1 + 0.035)^(24)

= $40,000 * (1.035)^(24)

Now, calculate the exponent:

= $40,000 * 2.2080403791157

Finally, multiply the principal amount by this value to find the future value of the investment:

= $88,321.615164628

So, your 6 year investment of $40,000 at 14$88,321.62 now.