Asked by Th?ch Nguy?n on May 13, 2024
Verified
A series of $500 contributions were made at three-month intervals to a fund earning 7.5% compounded quarterly. The accumulated amount continued to earn 7.5% compounded quarterly for three years after the last contribution, ending the period at $13,232.56. How many $500 contributions were made?
Compounded Quarterly
Calculation of interest on a loan or investment where the interest is added to the principal four times a year.
Accumulated Amount
The total amount accumulated over time, considering various factors like initial principal and compound interest.
- Estimate the eventual worth of investments given varying periods of compounding.
- Exercise the concept of present value to determine the periodic payments or contributions required.
- Gain insight into the determinants contributing to the increase and decrease of savings and investments over periods.
Verified Answer
HB
Learning Objectives
- Estimate the eventual worth of investments given varying periods of compounding.
- Exercise the concept of present value to determine the periodic payments or contributions required.
- Gain insight into the determinants contributing to the increase and decrease of savings and investments over periods.