SOLUTION: Future Value of an Annuity:
F equals R cross times fraction numerator left square bracket left parenthesis 1 plus i right parenthesis to the power of n minus 1 right square
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-> SOLUTION: Future Value of an Annuity:
F equals R cross times fraction numerator left square bracket left parenthesis 1 plus i right parenthesis to the power of n minus 1 right square
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F equals R cross times fraction numerator left square bracket left parenthesis 1 plus i right parenthesis to the power of n minus 1 right square bracket over denominator i end fraction
Sinking Fund:
R equals F cross times left parenthesis fraction numerator i over denominator left square bracket left parenthesis 1 plus i right parenthesis to the power of n minus 1 right square bracket end fraction right parenthesis
Where
F = future value of the annuity
R = periodic payment
i = r/k
n = t*k
Question with formulas
A new mother would like to start a college fund for her newborn daughter. She makes quarterly deposits of $500 into a college fund that earns 6% compounded quarterly for the next 18 years.
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How much will her daughter have available in her college fund when she turns 18? $
Round to the nearest dollar
What is the total amount the mother deposited into the fund over the 18 years? $
Round to the nearest dollar
How much interest was earned over the 18 years? $
Round to the nearest dollar
Use the WHOLE DOLLAR AMOUNTS you entered in as your answers above.
