Question:
Refer to the situation described in BE 6–6. How much will Leslie accumulate in three years by depositing
$500 at the beginning of each of the next 12 quarters?
Answer:
Interest is paid for 12 periods at 1% (one-quarter of the annual rate).
FVAD = $500 (12.8093) = $6,405
Future value of an annuity due of $1: n = 12, i = 1% (from Table 5)
Refer to the situation described in BE 6–6. How much will Leslie accumulate in three years by depositing
$500 at the beginning of each of the next 12 quarters?
Answer:
Interest is paid for 12 periods at 1% (one-quarter of the annual rate).
FVAD = $500 (12.8093) = $6,405
Future value of an annuity due of $1: n = 12, i = 1% (from Table 5)
