Question

Keith wants to save money to purchase a car. He buys an annuity with quarterly payments that earn 2.8% interest, compounded quarterly. Payments will be made at the end of each quarter. Find the total value of the annuity in 5 years if each quarterly payment is $851.

Answer 1

Answer: On each, first identify as a Future Value annuity or Present Value annuity. Then answer the question. 1) How much money must you deposit now at 6% interest compounded quarterly in order to be able to withdraw $3,000 at the end of each quarter year for two years?

Step-by-step explanation: hope this helps