Question

An annuity last for 12 calendar years.At the end of each quarter,there is a payment.First quarter payments are $200,second quarter payments are $300,third quarter payments are$150 and fourth quarter payments are $400.Find the accumulated value of this annuity just after the last payment using a nominal quarterly interest rate of 7.2%.

Answer 1

Start with m = 200(1+I)^3 +300(1+I)^2+150(1+I)+400