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Future value and interest


Bill needs $8000 to buy a new car in five years. How much should be deposited at the end of every quarter into an account that earns 8% interest compounded quarterly?

a. $329.25
b. $345.97
c. $666.33
d. $ 489.25
e. None of the above

Solution Summary

This shows how to determine the amount deposited in order to have a given future value.