To answer this item, we first determine the effective interest by the equation,
ieff = (1 + i/n)^m - 1
Substituting the known values,
ieff = (1 + 0.0763/4)^4 - 1 = 0.0785
The future worth of the current investment is calculated through the equation,
F = P x (1 + ieff)^t
where F is the future worth, P is the present worth, ieff is the effective interest, and t is the number of years. Substituting the known values,
F = ($2,500) x (1 + 0.0785)^6 = $3,934.48
ANSWER: $3,934.48
