Asked by Lynda

Midtown Trust is paying 6% interest compounded quarterly. What is the future value of $2,000 deposited at the end of every three month period for 6 years?
Answered by Reiny
i = .06/4 = .015
n = 4(6) = 24

What is the "future" value ....
So which formula do you think you should use ?
What is your equation?

Let me know what you got.
Answered by Lynda
im not sure that is why i posted, our teacher gave us the assigment and told us to use the formulas and not the table in the book, but the book only gives me the formula with the table answers, not how to figure out how they got the number on the table
Answered by Lynda
not sure if it is an annuity due or ordinary annuity
if it is ordanary the formula would be FV=Pmt*(1+i)^n-1/i,,correct?

if it is annuity due
FV=Pmt*(1+i)^n-1/i*(1+i)
Answered by Lynda
2000(1+.015)^24/.015=
57267.04
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