Question

*NEED HELP* [CORRECT ME]
Gayle starts to save at age 20 for an extended vacation around the world that she will take on her 45th birthday. She will contribute $1000 each year to the account, which earns 1.65% annual interest, compounded quarterly. What is the future value of this investment when she takes her trip?
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1000(1+0.0165)^4-1/(0.0165) ?

Answer 1

Alright, well if she starts at age 20 and the trip will take place when she's 45, that's 25 years she will be adding $1000 to an account with 1.65% annual interest, compounded quarterly.
Let's get some equations out for interest:
Annually = P × (1 + r) = (annual compounding). Quarterly = P (1 + r/4)4 = (quarterly compounding)
Now over the course of 25 years, without the interest, she has added $25,000.
So to write the equation, just plug in the numbers given and solve.

Answer 2

lol ohh

Answer 3

A=1000*(1+0.0165) , Q=1000(1+0.0165/4)4 ?

Answer 4

Good, those are your interest rates.
Now, how many quarters are in 25 years?

Answer 5

I dont really know :c

Answer 6

A quarter is 1/4.
1 year has 4 quarters.

Answer 7

I just plug (1/4) in the formula ?

Answer 8

Right

Answer 9

A=1000(1+0.0165/4)^(1/4) ? i'm sorry If I got it wrong i'm terrible at this