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Calculate the accumulated amount of end-of-month payments of $5,000 made at 3.21% compounded quarterly for 4 years. Round to
How much should Austin have in a savings account that is earning 4.50% compounded quarterly, if he plans to withdraw $2,400 f
Zachary deposits $350 at the end of every quarter for 4 years and 6 months in a retirement fund at 3.20% compounded monthly.
How much money should Shane invest today in a fund that earns interest at 4.56% compounded quarterly, if he wants to receive
Falco Inc. financed the purchase of a machine with a loan at 3.49% compounded quarterly. This loan will be settled by making
Allison contributed $900 at the end of every 3 months into an RRSP fund earning 2.80% compounded quarterly for 9 years. a. Wh
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Answer #1

1. Formula: The Future Value of an ordinary annuity (FV)

FV= C× {[(1+r)^n]-1}/r

FV = Future value (The cummulative amount available in Future)
C= Periodic cash out flow. 5000
r =effective interest rate for the period.
[(1+0.0321/4)^(1/3)]-1 = 0.0026678
n = number of periods. 4×12 = 48

FV= 5000× {[(1+0.0026678)^48]-1}/0.0026678

FV = $255800.02
Amount accumulated= $$255800.02

2. In Financal Calculator input
N= 9 x 4
I/Y = 4.5÷4
PMT = -2400
CPT + PV = $70,722.84 (Answer).

3. Ordinary general annuity.
4.5 x 4= 18
18 payment (answer).

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