Monica deposited $760 into an ordinary annuity after each quarter for 2 years at 4% interest compounded quarterly. Determine the

Question

3 years ago

14

(a) future value of each account and (b) the total interest amount earned.

1 answer:

Ghella [55] · Answer 1 · 2022-04-15T16:36:48+03:00

4 0

Answer:

FV=$823.004

Total interest earned=$63.004

Step-by-step explanation:

FV=PV×(1+i/n)^nt

PV=$760

I=4%

t=2 years

n=4

FV=760+(1+0.04/4)^4*2

=760+(1+0.01)^8

=760+(1.01)^8

=760+(1.0829)

=823.004

FV=$823.004

Total interest amount earned

=FV-PV

=$823.004-760

=$63.004