Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. how much must be deposited at the end of every thr

How much must be deposited at the end of every three months for 4.75 years...

70.2K

Verified Solution

Question

Accounting

How much must be deposited at the end of every three months for 4.75 years to accumulate to $4200.00 at 9% compounded quarterly? n ve for PMT. 5.5 12 ind the ni Calculate the periodic interest rate, i = PMT= 9% 4 ubstitute FVn (1 + i)^- Then calculate the number of periodic payments using n = P/Yx term, where P/Y is the number of payment periods per year and term is the leng annuity in years. n=4x4.75-19 Substitute the future value, the periodic interest rate, and the number of periods into the formula and simplify, rounding to the nearest cent. = 2.25% PMT= 4200.00 19 (1+0.0225) 0.0225 $179.60 1/Y C/Y, using the annual interest rate, I/Y, and the number of compounding periods per year, C/Y. 1 Therefore, the required deposit is $179.60

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students