Asked by Beth

Find the future value of an ordinary annuity. Payments are made and interest is compounded as follows:
R=600
7% interest compounded quarterly
for 5 years

I set this up as follows and still am getting the wrong answer:

500 (1.07)^5-1/0.07

Please help!!
Answered by Steve
It's compounded quarterly, not annually, so divide the interest rate by 4 and multiply the exponent by 4.
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