What quarterly payment is required to accumulate to a future value amount of $10,000 in eight years if money earns 4.5% compounded quarterly?

Compounded Quarterly

A method where interest is computed on the original amount as well as on the interest that has been added over prior periods, and this calculation occurs quarterly.

Quarterly Payment

A payment or installment made once every three months.

Future Value

The value of an investment at a specific date in the future, accounting for factors like interest rates and time.

Apply principles related to the time value of money to establish the value of annuities and bonds.
Scrutinize the relationship between the frequency of compounding and its consequences on investment yields and loan expenditures.

Verified Answer

Devon AtkinsonJun 18, 2024

Final Answer :

$261.35

Learning Objectives

Apply principles related to the time value of money to establish the value of annuities and bonds.
Scrutinize the relationship between the frequency of compounding and its consequences on investment yields and loan expenditures.

What quarterly payment is required to accumulate to a future value amount of $10,000 in eight years if money earns 4.5% compounded quarterly?

Definitions

Learning Objectives

Learning Objectives

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