Question

Compound quarterly multiple choice question!

Answer 1

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?

A) $7,559.06
B) $15,118.11
C) $7,502.45
D) $7,658.27

Answer 2

It is a direct appliation of future value...

Answer 3

I know the compound interest formula, but the thing i'm having trouble with is the adding the extra deposit :(. Because it's adding $575 every six months, and then you have the 5.25% interest every quarter. I got the answer $7,502.45, but I just want to make sure that it's correct.