SOLUTION: jack plans to deposit 100 at the end of every quarter for the next 10 years into an annuity that pays 6% what will be the value of jack's annuity at maturity
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Question 1075862: jack plans to deposit 100 at the end of every quarter for the next 10 years into an annuity that pays 6% what will be the value of jack's annuity at maturity Answer by addingup(3677) (Show Source):
You can put this solution on YOUR website! Jack deposits 100 at the end of every quarter AND the annuity COMPOUNDS EVERY QUARTER. Based on these assumptions:
:
P = PMT(((1+r)^(n)-1)/r)
P = 100(((1+(0.06/4))^(40)-1)/0.06/4)
P = 100((1.015)^(40)-1)/0.015
P = 100(1.8140-1)/0.015
P = 100(54.2667) = 5,426.67
