Question

Leslie McCormack is in the spring quarter of her freshman year of college. She and her friends already are planning a trip to Europe after graduation in a little over three years. Leslie would like to contribute to a savings account over the next three years in order to accumulate enough money to take the trip. Assume an interest rate of 6%, compounded quarterly. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

How much will she accumulate in three years by depositing $580 at the end of each of the next 12 quarters, beginning three months from now?
Table or calculator function:
Payment:
n =
i =
Future Value:

Answer 1

the future value is $ 7,563.90

Step-by-step explanation:

The computation of the future value is shown below:

Given that

RATE = 0.06 ÷ 4 = 0.015

NPER = 12

PMT = $580

PV = $0

The formula is given below:

= -FV(RATE,NPER,PMT,PV)

After applying the above formula the future value is $ 7,563.90