Question 1207427
you pay 200 for the fund.
the length of the fund is 10 years.
the interest rate of the fund is 6.6% compounded quarterly.


i used a financial calculator to solve this.


inputs to the calculator are:


present value = -200
future value = 0
interest rate = 6.6% per year / 4 = 1.65% per quartert
number of quarters = 10 year * 4 = 40
dividends are received at the end of each quarter.


calculator says that the value of the dividends received at the end of each quarter are equal to 6.869883668.


round to the nearest penny you get a dividenc of 6.87 received at the end of each quarter.


there is an online calculator that provides the same results.
this calculator is at https://arachnoid.com/finance/.


here are the results from using that calculator.


<img src = "http://theo.x10hosting.com/2024/060307.jpg">