Question

Suppose you make a $125 deposit at the end of every quarter into an account containing $800 at the start. The account earns 3.2% per year, compounded quarterly. What will be the value of the investment at the end of 20 years?

Answer 1

I just need the formula

Answer 2

This problem involves an annuity where you make monthly payments into the annuity and wish to calculate the value of the account in a number of years. Have you considered doing an Internet search for the necessary formula or formulas? What would the appropriate search terms be? I did a search for "future value of a monthly annuity" and came up with the following:

https://www.google.com/webhp?sourceid=chrome-instant&rlz=1C1CHFX_enUS461US461&ion=1&espv=2&es_th=1&ie=UTF-8#q=future%20value%20of%20monthy%20annuity%20payments

Try looking through these results, or do a search of your own. Bet you can quickly find what you need and want.

Answer 3

thank you