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

Next > < Previous

Related Solutions

Your client will make twenty quarterly deposits of $5,000 into her retirement account earning 7.3% APR...

Your client will make twenty quarterly deposits of $5,000 into her retirement account earning 7.3% APR compounded daily. If the first deposit is made one quarter from today, how much will be in the account when the last deposited is made?

If you make 30 semiannual deposits of $2000 into a fund that earns 10% compounded quarterly,...

If you make 30 semiannual deposits of $2000 into a fund that earns 10% compounded quarterly, how much money will be in the fund two years after the last deposit?

You have set up an investment that pays 5% compounded quarterly but requires deposits of $1,000...

You have set up an investment that pays 5% compounded quarterly but requires deposits of $1,000 at the beginning of each quarter period for 4 years. How much will you have in the account in 4 years? The account will be worth $ in 4 years? (Round to 2 decimal places.)

Suppose you make equal quarterly deposits of $1,000 into a fund that pays interest at a...

Suppose you make equal quarterly deposits of $1,000 into a fund that pays interest at a rate of 12% compounded monthly. Find the balance at the end of year 3. (can you please sove it with excal and show the formales )

Jamie deposits $10,000 in an account earning 3% interest, compounded quarterly. How much will the account...

Jamie deposits $10,000 in an account earning 3% interest, compounded quarterly. How much will the account balance be in 10 years? $13,483.48 $22,879.28 $12,327.12 $14,724.14

You plan to make monthly deposits of $1,000 into an account at the beginning of each...

You plan to make monthly deposits of $1,000 into an account at the beginning of each month for the next 12 years. If you can earn 3.0% interest, what will your final balance be by the end of 12 years? Round to the nearest cent. [Hint: Beginning of period monthly cash flows!]

You plan to make monthly deposits of $1,000 into an account at the beginning of each...

You plan to make monthly deposits of $1,000 into an account at the beginning of each month for the next 11 years. If you can earn 3.4% interest, what will your final balance be by the end of 11 years? Round to the nearest cent. [Hint: Beginning of period monthly cash flows!]

Quarterly deposits are made into a fund at the beginning of each quarter starting today for...

Quarterly deposits are made into a fund at the beginning of each quarter starting today for 5 years. The first 8 deposits are $1000 each and deposits increase by 1% per quarter thereafter. If the fund earns 8% effective annually, find the accumulated value at the end of 5 years. Please explain which equations you used and do not use excel.

Ten months from today, you plan to make the first of several quarterly deposits into an...

Ten months from today, you plan to make the first of several quarterly deposits into an account paying an APR of 4% with monthly compounding. After your first deposit, subsequent deposits will grow by 1% each. After your final deposit three years and seven months from today, you will simply let interest accrue on the account. Set up the calculations needed to determine your first and your final deposit if you want the balance in your account to equal $100,000...

If you need $5,000 in four years from today and you can make quarterly deposits of...

If you need $5,000 in four years from today and you can make quarterly deposits of $370 in your money market account, what is the APR you are looking for? If you need $5,000 in four years from today and you can make quarterly deposits of $370 in your money market account, what is the APR you are looking for? You will make the following investments for a boat: $2,500 today, $3,000 at the end of year three, and $1800...

Subjects