Question

What is the future value in 18 years of an ordinary annuity cash flow of $2,802 every quarter of a year at the end of the period, at an annual interest rate of 11.84 percent per year, compounded quarterly

Answer 1

	A/c balance after 18 years	P×[(1+r)^n-1]÷r
	Here,
A	Interest rate per annum	11.84%
B	Number of years	18
C	Number of payments per per annum	4
A÷C	Interest rate per period ( r)	2.96%
B×C	Number of periods (n)	72
	Payment per period (P)	$                                               2,802
	A/c balance after 18 years	$     678,571.69
		2802×((1+2.96%)^72-1)÷2.96%