Madeline and Jonathan want to purchase a home in six years. They will contribute $540 every six months to a savings account with 5.25% interest, compounded quarterly. What is the future value of this investment, when Madeline and Jonathan need to make a down payment?

Question

anonymous · Answer

@tkhunny 

I think this involves the same FVOA formula but I'm unsure because 540 is paid every 6 months.

rational · Answer

you may assume 540*2 = 1080 per year

anonymous · Answer

Alright and I would use the FVOA formula:

anonymous · Answer

Answer options:
 $7,559.06
 $15,118.11
 $7,502.45
 $7,658.27

anonymous · Answer

I'm going through my lesson atm..  Trying to figure out what the formula they want is

rational · Answer

https://www.wolframalpha.com/input/?i=%281080%2F4%29*%28%281%2B0.0525%2F4%29%5E%284*6%29-1%29%2F%280.0525%2F4%29

rational · Answer

$1080  per year is same as $1080/4 per quarter

anonymous · Answer

Ah I see now

anonymous · Answer

Got another one very similar if you're up for it?

rational · Answer

post