Question

If an employee deposits Rs. 2,000 at the end of each year into his company’s plan which pays 7% interest compounded quarterly, how much will he have in the account at the end of 5 years?

Answer 1

We use the formula for the future value of the annuity.

$FV = \frac{2,000×((1 + 0.07/4)^{20}-1) }{0.07/4} = 47,403.22$