Answer:
D) $8,276
Step-by-step explanation:
The question is not complete, hence find below question:
Harry Morgan plans to make 30 quarterly deposits of $200 into a savings account. The first deposit will be made immediately. The savings account pays interest at an annual rate of 8%, compounded quarterly. How much will Harry have accumulated in the savings account at the end of the seven and a half-year period? (Use the appropriate table in the text.)
A) $8,114
B) $24,469
C) $6,000
D) $8,276
Note that this is a case of annuity due whose future value formula is found below:
FV=quarterly payment*(1+r)^n-1/r*(1+r)
FV=future value of quarterly deposits which is unknown
quarterly deposit=$200
r=quarterly interest rate=8%/4=2%
n=number of quarterly deposits in 7.5years=7.5*4=30
FV=200*(1+2%)^30-1/2%*(1+2%)
FV=200*(1.811361584 -1)/2%*(1+2%)
FV=200*0.811361584/2%*1.02=$8,276