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Savings with periodic rates. What investment does Patrick need to make at the end of each...

Savings with periodic rates. What investment does Patrick need to make at the end of each quarter into his savings account over the coming 11 quarters to reach his vacation goal of ​$4,000 if he is getting 7​% APR on his​ account? What investment does Patrick need to make at the end of each quarter into his savings​ account?

​$_______(Round to the nearest​ cent.)

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Answer #1

Information provided:

Future value= $4,000

Time= 11 quarters

Interest rate= 7%/4= 1.75% per quarter

The question is solved by computing the quarterly investment.

Enter the below in a financial calculator to compute the amount of quarterly investment:

FV= 4,000

N= 11

I/Y= 1.75

Press the CPT key and PMT to compute the amount of quarterly investment.

The value obtained is 332.92.

Therefore, the amount of quarterly investment is $332.92 $333.

In case of any query, kindly comment on the solution.

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