Answer to Question #320617 in Mechanical Engineering for Jhonny

Question

5.) A student will receive P3,000 at the beginning of each 3 months for 4 years. What is the sum of

this annuity at the end of the 4th year if the interest rate is 6% compounded quarterly?

Ans. 54,604.07

Answer 1

A debt of four payments of $500 due in 6 months, 12 months, 18 months, and 24 months.

A debt of four quarterly payments in the amounts of $100, $200, $300, and $400.

Contributions to an RRSP of $200 every month for the first year followed by $200 every quarter for the second year.

Regular monthly deposits of $250 to an RRSP for five years, skipping one payment in the third year.