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Brianna deposits $150 at the end of each quarter into an account that pays 8% compounded quarterly. Calculate the amount in the account at the end of each time period.

 

a. 4 years     b. 9 months.     c. 6.75 years        d. 20.5 years

 Mar 1, 2021
 #1
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Payment made at end of periods    so  'ordinary annuity' calculation

FV =   PMT *  [ (1+r)n -1 ] / r        

                                                  r   for all of these = .08/4           PMT = 150  

                                                   n is the number of quarters:

                                                                      a.  16      b. 3      c.  27      d.  82  

 

Just plug in the numbers and calculate for each of the time periods 

      ,.......I would recommend doing each twice to check these complex calculations !!   cheeky

 Mar 1, 2021

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