Question

For the next 6 years, you plan to make equal quarterly deposits of $600.00 into an accountpaying 8% compounded quarterly. How much will be the total you have at the end of the time

Answer 1

Answer:

Final Value= $18,253.12

Explanation:

Giving the following information:

For the next 6 years, you plan to make equal quarterly deposits of $600.00 into an account paying 8% compounded quarterly.

To calculate the final value, we need to use the following formula:

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

A= quarterly deposit= 600

n= 6*4= 24

i= 0.08/4= 0.02

FV= {600*[(1.02^24) - 1]}/ 0.02= $18,253.12