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Semenov [28]
3 years ago
9

Muhammad deposited $800 at the beginning of each quarter for 8 years into an IRA. Given an interest rate of 8% compounded quarte

rly, find the future value
Business
1 answer:
Nastasia [14]3 years ago
8 0

Answer:

$18,775

Explanation:

We can calculate the future value of the investment by using the following formula:

Future Value = P * [1 -   (1+i)^-n]  / i

Here,

P is the periodic payments of $800

n is the number of periodic payments made which is 4 in a year and 32 in 8 years. So n = 32 number of payments.

r is the annual interest rate which is 8%

i is interest earned after on periodic periodic is:

i = Annual interest rate / Number of periodic payments in a year = 8% / 4

= 2%

By putting this value in the equation, we have:

Future Value = $800 * [1-  (1 + 2%)^-32]  / 2%

Future Value = $18,775

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nearly 3 billon

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Select True or False.
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Suppose an item sells for​ $125 in the United States and for​ 62,500 pesos in Chile. According to the law of one​ price, the nom
Ira Lisetskai [31]

Answer:

$1 = 500 Pesos

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