Suppose that every 3 months, you deposit $526 into a savings account whose annual rate is 1.3% with quarterly compounding. How much will you have in the account after 8 years?
Quarterly deposit (PMT) = $526
No of Deposits (N) = 32 (8 years x 4)
Quarterly interest rate (I) = 1.3%p.a / 4 = 0.325% per quarter
Amount you will have in account after 8 years (FV) = ??
Using financial calculator or FV function in excel,
Amount you will have in account after 8 years (FV) = $ 17,708.13
Suppose that every 3 months, you deposit $526 into a savings account whose annual rate is...