Question

future value of ordinary Annuity

metrobank is paying 8% interest compounded quarterly. Find the future value 10,000 deposited at the end of every three months for 6 years

Answer 1

$$FV=\dfrac{(1+i)^n-1}{i}\cdot R$$

Given

$R=10000$

$r=\dfrac{0.08}{4}=0.02$

$n=4\cdot6=24$

$$FV=\dfrac{(1+0.02)^{24}-1}{0.02}\cdot 10000=304218.62$$

$$FV=304218.62$$