You plan to accumulate $19,000 for a car in 6 years’ time. To dothis, you...

You plan to accumulate $19,000 for a car in 6 years’ time. To do this, you will make 24 level deposits (quarterly) with the first deposit today. If you earn 6.1% per annum compounding quarterly, what regular deposit will be needed? (round to nearest cent; don’t use $ sign or commas)

a. $651.63

b. $661.56

c. $1334.98

d. $2560.83

Solutions

Expert Solution

n = 24

FV = $19,000

r = 6.1%/4 = 0.01525 per quarter

Option B is correct: $661.56

jeff jeffy answered 2 years ago

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