Question 1170477
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A retirement fund earns 8% compounded quarterly. If Php 400 is deposited every three months 
for 25 years, the amount in the fund at the end of 25 years is nearest to?
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<pre>
Use the formula for the Future value (FV) of an Ordinary Annuity saving plan


    FV = {{{P*(((1+r)^n-1)/r)}}},    (1)


P is the quarterly payment (deposit); 
r is the quarterly effective rate of compounding, presented as a decimal; 
n is the number of deposits (= the number of years multiplied by 4, in this case).


Under the given conditions, P = 400;  r = 0.08/4 = 0.02;  n = 4*25 = 100.  
So, according to the formula (1), the fund will get at the end of the 25-th year


    FV = {{{400*(((1+0.02)^100-1)/0.02)}}} =  $124,892.92.    <U>ANSWER</U>
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Solved.