Answer to Question #317126 in Financial Math for Yanyan

Question

Arturo started to deposit 2,000 monthly in a fund that pays 8% compounded quarterly how much will be in the fan after 20 years

Answer 1

$FV=pmt[\frac{(1+\frac{r}{m})^{nm}-1}{\frac{r}{m}}]$

Where FV is the future value

Pmt is the monthly deposits, 2000

R is the rate, 8%

N is the number of years, 20

M is the number of times compounded, 4

$\therefore FV=2000 [\frac{(1+\frac{8\%}{4})^{4×20}-1}{\frac{8\%}{4}}]$

$FV=387543.92$