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How much will deposits of ​$540 made at the end of each quarter amount to after...

How much will deposits of ​$540 made at the end of each quarter amount to after 10 years if interest is 6.9​%compounded monthly​?

the future value is ?

Math   Statistics-And-Probability   
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Answer #1

Deposits of $540 are made at the end of each quarter. Therefore, in a year, $540 * 4 = $2160 is deposited.

The interest is 6.9% compounded monthly. Therefore, i(12) = 0.069

The effective interest rate 'i' and interest compounded quarterly 'i(4)' is calculated to solve the the problem.

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