SOLUTION: Can you please help me to determine the future value of an ordinary annuity paying 10% quarterly for nine years if quarterly deposits of $450 are made throughout the nine years.
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Question 205632: Can you please help me to determine the future value of an ordinary annuity paying 10% quarterly for nine years if quarterly deposits of $450 are made throughout the nine years.
If you could show me how you get to your answer, this will be useful.
You can put this solution on YOUR website! A=R((1+i)^nt-1)/(i)^n/p
A=450((1.025)^(4*9))-1/(.025)^(4/4)
A=450(2.432535)-1/.025
A=450(1.432535/.025)
A=450*57.3
A=$25,785.63
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n= number of compounding periods in a year
i= interest rate
R= payment
p= number of payments per year
t= time in years
(