Multiple Compounding Periods (FV): Carlyn Botti Wants to Invest $3,500

Multiple Choice

Multiple compounding periods (FV) : Carlyn Botti wants to invest $3,500 today in a money market fund that pays quarterly interest at 5.5 percent. She plans to fund a scholarship with the proceeds at her alma mater, Towson University. How much will Carlyn have at the end of seven years? (Round to the nearest dollar.)

A) $5,091
B) $3,548
C) $5,130
D) $5,075