Asked by Aaron
Mrs. Rogers wants to take a trip in ten years, she can save 650 every 3 months and earns 7.8% compounded quarterly. How much is her account worth at 5 years?
What formula should I be using for this? None of them I have tried seem to give me near the correct answer.
What formula should I be using for this? None of them I have tried seem to give me near the correct answer.
Answers
Answered by
Reiny
This is a normal amount of annuity problem
payment = 650
i = .078/4 = .0195
n = 4(5) = 20
amount = 650 ( 1.0195^20 - 1)/.0195
= $15,714.90
payment = 650
i = .078/4 = .0195
n = 4(5) = 20
amount = 650 ( 1.0195^20 - 1)/.0195
= $15,714.90
There are no AI answers yet. The ability to request AI answers is coming soon!
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.