Question

Anna Maria made quarterly deposits to her savings account each quarter over a 4-year period. The account pays 8% compounded quarterly and each deposit was for $250. Anna wishes to purchase some artwork for a birthday gi6 for her favorite aunt. How much does she have available to make her gi6 purchase?

Answer 1

The correct answer will be "$4659.83".

Step-by-step explanation:

The given values are:

Deposit amount

= $250

Account pays

= 8%

Time period

= 4 years

As we know,

⇒ Future value = Deposit Amount × FVAV (r, n)

On putting the estimated values, we get

⇒ =
`250* FVAV[(8 \ percent)/(4), (4* 4)]`

⇒ =
`250* FVAV (2 \ percent, 16)`

⇒ =
`250* 18.6393`

⇒ = $
`4659.83`

Note : % = percent