assume that you invest $750 at the end of each quarter for the next 20 years in a mutual fund.?

Question

The annual rate of interest that you expect to earn in this account is 5.25%. the amount in the account at the end of the 20 years is
please tell me how you got the answer

Answer 1

You can go to the website below and use the Future Value of an Ordinary Annuity calculator and enter the following data...
Payment Amount $ 750
Interest Rate 5.25%
Number of Payments 80

The future value is $842101.79
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http://www.uic.edu/classes/actg/actg500/pfvatutor.htm

Answer 2

I would use a spreadsheet and compute the interest each quarter assuming it compounds quarterly add the new deposit and copy it down 80 lines.
If I was doing it as homework I would use a formula for future value of a stream of income.
In real life it wouldn't matter since mutual funds don't pay interest except maybe money market and I wouldn't put money in them for 20 years. You would get about twice the return in other investments.

Answer 3

are you trying to find out what you would make if you invested in a CD every quarter at the probable rate 5.25%. if thats the case the rate is going to change over time.

if its a cd then youll make $39.37 every time you invest in one.
times 4 a year equals $157.50 every year. times 20 years is $3,150.

sorry if your not talking about a cd because if youre not then my math is completely wrong.

Answer 4

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