document.write( "Question 1170477: A retirement fund earns 8% compounded quarterly. If Php 400 is deposited every three months for 25 years, the amount in the fund at the end of 25 years is nearest to?
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Algebra.Com's Answer #851172 by ikleyn(52781) $\"\"$ $\"About$

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\n" ); document.write( "A retirement fund earns 8% compounded quarterly. If Php 400 is deposited every three months
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document.write( "Use the formula for the Future value (FV) of an Ordinary Annuity saving plan\r\n" );
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document.write( "    FV = ,    (1)\r\n" );
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document.write( "P is the quarterly payment (deposit); \r\n" );
document.write( "r is the quarterly effective rate of compounding, 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( "Under the given conditions, P = 400;  r = 0.08/4 = 0.02;  n = 4*25 = 100.  \r\n" );
document.write( "So, according to the formula (1), the fund will get at the end of the 25-th year\r\n" );
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document.write( "    FV =  =  $124,892.92.    ANSWER\r\n" );
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