Seebee makes quarterly (end of period) payments of $30,000 into a pension fund earning 12 percent per year compounded quarterly for 10 years.How much interest will they have earned in 10 years?
A)$2,262,030
B)$2,105,880
C)$905,880
D)$1,062,030

Question

Quizplus · Accepted Answer

FVAN₄₀ = $30,000(75.401) = $2,262,030
Fund balance after 10 years of $2,262,030 less Payments of $1,200,000 results in Interest =
$1,062,030

Seebee Makes Quarterly (End of Period) Payments of $30,000 into a Pension