Belle and the Beast want to retire in 10 years and can save $2,000 every three months.

Belle and the Beast want to retire in 10 years and can save $2,000 every three months. They plan to deposit the money at the beginning of each quarter into an account paying 4% compounded quarterly.

How much will Belle and the Beast have in 10 years?

Expert Solution

	A/c balance after 10 years	(1+r)×P×[(1+r)^n-1]÷r

	Here,

A	Interest rate per annum	4.00%
B	Number of years	10
C	Number of compoundings per per annum	4
A÷C	Interest rate per period ( r)	1.00%
B×C	Number of periods (n)	40
	Payment per period (P)	$ 2,000

	A/c balance after 10 years	$ 98,750.47
		(1+1%)×2000×((1+1%)^40-1)÷1%

jeff jeffy answered 2 years ago

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Question

Belle and the Beast want to retire in 10 years and can save $2,000 every three months.

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Expert Solution

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