Gina has planned to start her college education four years from now.To pay for her college education,she has decided to save $1,000 a quarter for the next four years in an investment account paying 12 percent interest.How much will she have at the end of the fourth year?

Question

Quizplus · Accepted Answer

In four years, Gina will save for 16 quarters ($1,000 x 16 = $16,000). At an interest rate of 12% per year, compounded quarterly, the future value of her investment would be:
$16,000 x (1 + 0.12/4)^(4x4)
= $20,157.25
Therefore, Gina will have $20,157 at the end of the fourth year.

Gina Has Planned to Start Her College Education Four Years