document.write( "Question 1149087: We want $5000 in 9 years. How much do we deposit each quarter in an account earning 8% interest compounded quarterly?
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Algebra.Com's Answer #770418 by ikleyn(52830)\"\" \"About 
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document.write( "It is a classic Ordinary Annuity saving plan. The general formula is \r\n" );
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document.write( "    FV = \"P%2A%28%28%281%2Br%29%5En-1%29%2Fr%29\",    \r\n" );
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document.write( "where  FV is the future value of the account;  P is the quarterly payment (deposit); \r\n" );
document.write( "       r is the factual quarterly rate presented as a decimal; \r\n" );
document.write( "       n is the number of deposits (= the number of years multiplied by 4, in this case).\r\n" );
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document.write( "From this formula, you get for the quarterly payment \r\n" );
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document.write( "    P = \"FV%2A%28r%2F%28%281%2Br%29%5En-1%29%29\".     (1)\r\n" );
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document.write( "Under the given conditions, FV = $5,000;  r = 0.08/4;  n = 9*4.  So, according to the formula (1), \r\n" );
document.write( "you get for the quarterly payment \r\n" );
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document.write( "    P = \"5000%2A%28%28%280.08%2F4%29%29%2F%28%281%2B0.08%2F4%29%5E%289%2A4%29-1%29%29%29\" = $96.16.\r\n" );
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document.write( "Answer.  The necessary quarterly deposit value is $96.16.\r\n" );
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\n" ); document.write( "\n" ); document.write( "On Ordinary Annuity saving plans,  see the lessons\r
\n" ); document.write( "\n" ); document.write( "    - Ordinary Annuity saving plans and geometric progressions\r
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\n" ); document.write( "\n" ); document.write( "The lessons contain  EVERYTHING  you need to know about this subject,  in clear and compact form.\r
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\n" ); document.write( "\n" ); document.write( "When you learn from these lessons,  you will be able to do similar calculations in semi-automatic mode.\r
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\n" ); document.write( "\n" ); document.write( "I edited my post after the notice by tutor @MathTherapy.\r
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\n" ); document.write( "\n" ); document.write( "Now you see the corrected modified version.\r
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\n" ); document.write( "\n" ); document.write( "Thanks to tutor @MathTherapy.\r
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