Question

John and Rosamond want to retire in 6 years and can save $250 every three months. They plan to deposit the money at the end of each quarter into an account paying 4.59% compounded quarterly. How much will they have at the end of 6 years?

Please round the answer to the nearest cent.

Really, I just need to know how to work out this formula.

Answer 1

which variable deposit formula are you using?

Answer 2

In all honesty, I don't know. I'm horrible at math and the teacher kind flung a bunch of problems at us. So figuring out what formula to use is my issue right now.

Answer 3

you'll wanna use the one that says something along the lines of 'regular interval deposit'

Answer 4

I can go find my econ book and tell you if you want/need

Answer 5

I'd appreciate that!

Answer 6

wow, i am so sorry
i was helping other kids, then openstudy was all slow!

Answer 7

PMT\[PMT=PV[i/1-(1+i)^-n] \]
where i is interest rate per compounding period
pv is present value
n is the number of payments
PMT is the variable to be solved...
just plug-in your numbers and solve

Answer 8

http://www.youtube.com/watch?v=SNoPFiFHkbA

Answer 9

watch the video....

Answer 10

hey, sorry about never coming back, openstudy crashed on me and wouldn't let me back on, buut
the equation you want to use is called a uniform series:
\[F = A \frac{ (1 + i)^n -1 }{ i } \]
double check that equation with your notes.
but i is you interest rate in decimal form
A is the amount that is put in every 3 months
and n is the number of times it will be compunded in the 6 years, which would be =6*4

*hint ur answer should be between 10,000 to 11,000

Answer 11

Thank you guys!