Jill starts to save at age 25 for a vacation home that she wants to buy for her 50th birthday. She will contribute $2500 each year to an account, which earns 1.3% annual interest, compounded quarterly. What is the future value of this investment, rounded to the nearest dollar, when Jill is ready to purchase the vacation home?

$73,712

$73,951

$294,847

$295,806

Question

Jill starts to save at age 25 for a vacation home that she wants to buy for her 50th birthday. She will contribute $2500 each year to an account, which earns 1.3% annual interest, compounded quarterly. What is the future value of this investment, rounded to the nearest dollar, when Jill is ready to purchase the vacation home?

 $73,712

 $73,951

 $294,847

 $295,806

anonymous · Answer

year one: 2500*1,013=x1
(x1+2500)*1,013=x2
(x2+2500)*1,013=x3
(....)
(x25+2500)*1,013=answer

AKA

(2500*years)*(1.013^years)=which is none of the options.
   unless i misunderstood the question