Question

Alice Longtree has decided to invest $400 quarterly for 4 years in an ordinary annuity at 8 %. As her financial adviser, calculate for Alice the total cash value of the annuity at the end of year 4.
i = .08/4 = .02
n = 16
Amount = 400(1.02^16 - 1)/.02
= ...
5431.08

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