If $100 is deposited in a fund at thebeginning of each 3 months for 8yearsand the money is invested at 5%compounded quarterly, how much isthe fund (a) at the end of 7 3/4 yearsjust after the payment due then ismade(b) at the end of 8 years?

Quarterly deposit (C) = $100 Quarterly interest rate (r) = 0.0125 (i.e. 0.05 / 4) a. Number of…

Answered: If $100 is deposited in a fund at the…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 25P

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If $100 is deposited in a fund at the beginning of each 3 months for 8 years and the money is invested at 5% compounded quarterly, how much is the fund (a) at the end of 7 3/4 years just after the payment due then is made (b) at the end of 8 years?