Find the future value of the ordinary annuity. Interest is compounded annually, unless otherwise indicated.
-$\mathrm{PMT}=\$ 10,000,4.5 \%$ interest compounded quarterly for 7 years
A) $\$ 1,215,868.05$
B) $\$ 326,979.16$
C) $\$ 313,452.82$
D) $\$ 80,191.52$

Question

Quizplus · Accepted Answer

The future value of an ordinary annuity can be calculated using the formula for compound interest with periodic payments. Since the interest is compounded quarterly, the interest rate per period is 1.125% (4.5%/4), and there are 28 periods (7 years * 4). Using these values, the future value is calculated to be approximately \$326,979.16.

Find the Future Value of the Ordinary Annuity PMT=$10,000,4.5%\mathrm{PMT}=\$ 10,000,4.5 \%PMT=$10,000,4.5%

Find the Future Value of the Ordinary Annuity $\mathrm{PMT}=\$ 10,000,4.5 \%$