Question

What investment per quarter does Luisa need to make at the end of each quarter into her savings account over 8 quarters to reach her vacation goal of $10,000 if she is getting a 24% APR on her account?

Answer 1

c. $1,010.36

Step-by-step explanation:

Options " ) $1,610.36 2) $522.93 3) $1,010.36 4) $110.02"

Future value = Pmt * ((1+r)^n - 1) / r

Pmt = FV / ((1+r)^n - 1) / r

Size of the deposit = 10,000 / ((1.06^8) - 1) / 0.06

Size of the deposit = 10,000 / (1.59384807453 - 1) / 0.06

Size of the deposit = 10,000 / (0.59384807453/0.06)

Size of the deposit = 10,000 / 9.897467908833333

Size of the deposit = 1010.359426482723

Size of the deposit = $1,010.36