Question

You deposit $2,500 into a savings plan at the end of every three months. The interest rate is 5.5% compounded quarterly. Find the value of the annuity after 8 years. Do not round until the final answer. Then, round to the nearest cent.

Answer 1

Your equation should look like this
A=2,500e^0.055(8)

Answer 2

quarterly compounding is not continuous compounding, nor does that address the "annuity" being paid

Answer 3

since 3 months is 1/4 of a year, you ar making equal payments to the account

\[P\frac{1-k^{4*8}}{1-k}~:~k=1+.055/4\]

Answer 4

and P is your payment amount