A question about math of finance When Samantha was born, her parents set up an a

Question

A question about math of finance

When Samantha was born, her parents set up an account to save for her college fund. They decided to make payments of $250 quarterly for 18 years into the account,t which pays 7.2% interest compounded monthly. The first payment is made one quarter from now. What will be the balance in the account at the end of 18 years?

Please show steps
A question about math of finance

When Samantha was born, her parents set up an account to save for her college fund. They decided to make payments of $250 quarterly for 18 years into the account,t which pays 7.2% interest compounded monthly. The first payment is made one quarter from now. What will be the balance in the account at the end of 18 years?

Please show steps


When Samantha was born, her parents set up an account to save for her college fund. They decided to make payments of $250 quarterly for 18 years into the account,t which pays 7.2% interest compounded monthly. The first payment is made one quarter from now. What will be the balance in the account at the end of 18 years?

Please show steps

Explanation / Answer

A/c balance after 18 years P×[(1+r)^n-1]÷r Here, 1 Interest rate per annum 7.24% 1+8%/12)^12-1 2 Number of years                                                      18 3 Number of payments per per annum                                                         4 1÷3 Interest rate per period ( r) 1.81% 2×3 Number of periods (n) 72 Payment per period (P) $                                                250 A/c balance after 18 years $                                    36,454.77 250*((1+1.81%)^72-1)/1.81%

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---