In: Finance
Putting into a financial calculator;
PMT = -110
N = (12*4)=48
I/Y = (5.4/12) = 0.45%
Solving for FV; we get FV = 5,878.92
Hence future value of payments = $5,878.92 (Approx)
Total deposits made = (110*48) = $5280
Hence interest earned = Future value of payments-Total deposits made
= 5,878.92-5280
= $598.92 (Approx)
interest earned = $598.92 (Approx)