SOLUTION: Assume that you make quarterly payments of $700 into an annuity paying 8% interest compounded quarterly. How much will be in the account after 12 years?

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Question 1198971: Assume that you make quarterly payments of $700 into an annuity paying 8% interest compounded quarterly. How much will be in the account after 12 years?
Answer by MathLover1(20850) About Me  (Show Source):
You can put this solution on YOUR website!

FV+=+P%2A%28%28%281%2Br%29%5En-1%29%2Fr%29

where FV is the future value of the account
+P is your monthly payment
r+is the annual percentage rate presented as a decimal
n+is the number of payments (= the number of years multiplied by 4, in this case)

Under the given conditions, P+=+700; r+=+0.08%2F4=0.02; +n+=+4%2A12=48.
So, according to the formula above, you get at the end of the 12-th year
FV+=+700%2A%28%28%281%2B0.02%29%5E48-1%29%2F0.02%29
FV+=55547.46