A) Suppose payments were made at the end of each quarter into an ordinary annuity...
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Accounting
A) Suppose payments were made at the end of each quarter into an ordinary annuity earning interest at the rate of 10% per year compounded quarterly. If the future value of the annuity after 5 years is $50,000, what was the size of each payment?
B) The Pirerras are planning to go to Europe 3 years from now and have agreed to set aside $150/month for their trip. If they deposit this money at the end of each month into a savings account paying interest at the rate of 2%/year compounded monthly, how much money will be in their travel fund at the end of the third year? (Round your answer to the nearest cent.)
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