Question 1167593
formula to use is:


ANNUITY FOR A PRESENT AMOUNT WITH END OF TIME PERIOD PAYMENTS

a = (p*r)/(1-(1/(1+r)^n))

a is the annuity.
p is the present amount.
r is the interest rate per time period.
n is the number of time periods.


when you compound quarterly, the number of time periods = number of years * 4 and the interest rate per period = the interest rate per year / 4.


multiply number of years by 12 to get number of quarters.
divide the yearly interest rate by 4 to get the quarterly interest rate.


you get:


p = 20,000
n = 4 * 12 = 48
r = .08 / 4 = .02


and the equation becomes:


a = (20000*.02)/(1-(1/(1+.02)^48))


solve for a to get a = 652.0367109


round to 2 decimal places to get a = 652.04.


that's the payment made at the end of each quarter for 12 years.