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Leslie McCormack is in the spring quarter of her freshman year of college

Leslie McCormack is in the spring quarter of her freshman year of college. She and her friends already are planning a trip to Europe after graduation in a little over three years. Leslie would like to contribute to a savings account over the next three years in order to accumulate enough money to take the trip. Assume an interest rate of 8 %, compounded quarterly. (FV of $1, PV of $ 1, FVA of $ 1, PVA of $ 1. FVAD of $ 1 and PVAD of $ 1 (Use appropriate factor(s) from the tables provided.)


How much will Leslie accumulate in three years by depositing $ 680 at the beginning of each of the next 12 quarters? (Round your final answers to nearest whole dollar amount.)


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Answer #1

Future value = Periodic Amount*Future value of annuity due(2%, 12 periods)

= 680*13.6803

= $9,302.60

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