Question

monique deposited 1800 at the beginning of each quarter for 6 years into an ira. given an interest rate of 6% compounded quarterly find the value

Answer 1

Use the formula of the future value of annuity due because the amount of 1800 is deposited at the (beginning) of each quarter
The formula is
Fv=pmt [((1+r/k)^(kn)-1)÷(r/k)]×(1+r/k)
Fv future value?
PMT amount deposited 1800
R interest rate 0.06
K compounded quarterly 4
N time 6years
Fv=1,800×((((1+0.06÷4)^(4×6)
−1)÷(0.06÷4))×(1+0.06÷4))
=52,313.44....answer