In 4 years, you will start receiving monthly payments of $950 from a trust fund that one of your great parents set up for you. The first payment will be made at the very end of year 4 and the payments will last for 27 years. You plan to deposit the money you receive every month into a special account right away that pays 6.10% APR with quarterly compounding.
Today the account mentioned above has a balance of $20000.
Assuming that interest rate will stay constant, what will be the account balance at the end of the 11th year?
Quarterly compounded APR=6.10%
monthly compounded APR=(((1+6.10%/4)^(4/12)-1)*12)
Account balance at the end of 11th
year=20000*(1+6.1%/4)^(4*11)+950/((((1+6.10%/4)^(4/12)-1)*12)/12)*((1+(((1+6.10%/4)^(4/12)-1)*12)/12)^85-1)*(1+(((1+6.10%/4)^(4/12)-1)*12)/12)=140009.05280
In 4 years, you will start receiving monthly payments of $950 from a trust fund that...
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