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!!
1 answer
It's compounded quarterly, not annually, so divide the interest rate by 4 and multiply the exponent by 4.