Question

1. Kelli needs $10,000 in 9 years. a) What amount should she deposit at the end of each quarter at 7.25% compounded quarterly so that she will have her $10,000? b) How much interest does she earn?

Answer 1

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SOLVED WITH FINANCIAL FORMULA

- 2x Find & Select Cells R PV, FV, ANNUITY (Autosaved) - Microsoft Excel (Product Activation Failed) File Home Insert Page Layout Formulas Data Review View Add-Ins % Cut Σ AutoSum : A Calibri 11 A A = = = V Wrap Text General Ea Copy Fill Paste B I U. B. A Merge & Center - Merge & Center - $ $ -% % ; Format Painter 48. Conditional Format Cell Insert Delete Format Sort & Formatting as Table Styles 2 Clear Filter Clipboard Font Alignment Number Styles Editing 0538 fax J K M N O P Q 520 521 FV = 10000 522 RATE = 7.25% 523 COMPOUNDED QUARTERLY, m = 4 524 YEARS = 9 525 526 QUARTERLY RATE 1.812500% r 527 NO OF QUARTERS 36 n 528 529 FV = PMT*(1/r)*((1+r)^n-1) 10000 = PMT*(1/0.018125)*((1+0.018125)^36-1) 531 10000 = PMT*50.15990485 ANSWER a PMT = 199.36 533 534 FUTURE VALUE 10000 535 TOTAL AMOUNT DEPOSITED 7177.05 [199.36 X 36] NO INTERMEDIATE ROUNDING IS DONE 536 ANSWER b TOTAL INTEREST EARNED 2822.95 [10000 - 7177.05] 537 538 530 532 539 540 W Rea LOAN OPTIONS pv, fv, annuity_CAP STRU VALUE profit margin_loan with points LOCK BOX DILUTION DOLLAR COST AVG CALCULATOR ferences EXPONPER APR CPI ear FVA PILI BO! 120% 1 + Ha é o . D R WA L LS DOW9 ..* 4 40 ENG 04:26