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If you make 20 quarterly deposits of $1,000 beginning today and are earning 6% APR (compounded...

If you make 20 quarterly deposits of $1,000 beginning today and are earning 6% APR (compounded monthly), how much will the account be worth 20 quarters from today?

Solutions

Expert Solution

Solution :-

Effective Quarterly rate =

= 1.0151 - 1  

= 0.015075

= 1.5075%

Now the

The the worth of account after 20 years =

Therefore Future Worth after 20 Quarters = $23,489.60

If there is any doubt please ask in comments

Thank you please rate

jeff jeffy answered 1 year ago
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