In order to accumulate enough money for a down payment on a house, a couple deposits $800 per quarter into an account paying 4%
compounded quarterly. If payments are made at the end of each period, how much will be in the account in 6 years
1 answer:
Answer:
$21,578.77
Explanation:
For computing the amount after 6 years we have to determine the future value i.e to be shown in the attachment below:
Given that,
Present value = $0
Rate of interest = 4% ÷ 4 quarters = 1%
NPER = 6 years × 4 quarters = 24 quarters
PMT = $800
The formula is shown below:
= FV(Rate;NPER;PMT;PV;type)
After applying the above formula, the future value is $21,578.77
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Answer
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Explanation
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