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11111nata11111 [884]
3 years ago
11

Alba is Saving for a big overseas trip she hopes to take her senior year in college , which is four years away . She plans to de

posit 10,000 at the end of each quarter in an account earning 8% annual interest , compounded quarterly . How much money will alba have for trip after 20 years ?
Mathematics
1 answer:
eimsori [14]3 years ago
6 0

Answer:

FV= $1,937,719.58

Step-by-step explanation:

Giving the following information:

Quarter deposit= $10,000

Number of periods= 20*4= 80

Interest rate? 0.08/4= 0.02

<u>To calculate the future value, we need to use the following formula:</u>

FV= {A*[(1+i)^n-1]}/i

A= quarter deposit

FV= {10,000*[(1.02^80) - 1]} / 0.02

FV= $1,937,719.58

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