171k views
5 votes
What is the accumulated value of periodic deposits of $6,000 made into an investment fund at the beginning of every quarter, for 8 years, if the interest rate is 3.25% compounded quarterly?

1 Answer

0 votes

Final answer:

The accumulated value of periodic deposits of $6,000 made into an investment fund at the beginning of every quarter, for 8 years, with an interest rate of 3.25% compounded quarterly, is approximately $66,619.98

Step-by-step explanation:

To calculate the accumulated value of periodic deposits, we can use the formula for the future value of an ordinary annuity:

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

Where FV is the future value, P is the periodic deposit, r is the interest rate per period, and n is the number of periods.

Plugging in the values for this scenario, we get:

FV = 6000 * ((1 + 0.0325/4)^(8*4) - 1) / (0.0325/4)

This calculates to approximately $66,619.98

User Djna
by
7.9k points