Question

In: Economics

Suppose that $12,000 is placed in a bank account at the end of each quarter over...

Suppose that $12,000 is placed in a bank account at the end of each quarter over the next 15 years. What is the future worth at the end of 14 years when the interest rate is 8.75% compounded Quarterly?
A) $258,033
B) $257,840
C) $255,145
D) None of these

Solutions

Expert Solution

(D) None of the above.

If you start with 0.00 in a savings account earning a 8.75% interest rate, compounded Quarterly, and make 12,000.00 deposits on a Quarterly basis, after 14 Years your savings account will have grown to 1,303,795.35 -- of which 672,000.00 is the total of your beginning balance plus deposits, and 631,795.35 is the total interest earnings.

To see it annually,

Thanks!

Rahul Sunny answered 2 years ago
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