Question 1062056
750,000=A(1+(0.042/4)^100 minus 1)/(.042/4)
I will round here, but don't round until the end.
750,0008(0.042/4)=7875
7875=A (2.842-1)
A=7875/1.842=$4275.23
Every quarter for 25 years is 100 times that, or $427,523 deposited
The interest is 750,000-427523=$322,477.
The important thing is to divide the annual interest rate by the number of compoundings per year (here, 4) before raising it to the 100th power here, and dividing all that by 0.042/4. That is where the 7875 came from, 750,000*(0.042/4).