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
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 !!