To save money, you want to begin contributing money to a risky brokerage account. Your plan is to make 4 contributions to the brokerage account. Each contribution will be $5,000 and each will be made at the beginning of each quarter beginning now and until the end of the year (the first immediately and then every 3 months). Assume that the account pays an 8% quarterly return with monthly compounding. How much money do you expect to have in the account immediately after making the last deposit?
a)20,938.67 b)19,784.21 c)19,021.54
d)26,546.36 e)25,369,14 f)22,602.32
g)22,215.54 h)23,598.54 i)24,879.73
Quarterly interest rate= 8%
Therefore monthly interest rate with ...
The solution calculates the Future Value of an Annuity.