You deposit $R every 6 months in a fund earning interest at j₄ = 5%.Six months after your 15^th deposit,you have accumulated $8650.What is R?

Question

Quizplus · Accepted Answer

The correct answer is A.The future value of an annuity is given by the formula:FV = R * [(1 + j/2)^(n*2) - 1] / (j/2)where:FV is the future valueR is the regular depositj is the annual interest raten is the number of depositsIn this case, we have:FV = $8650j = 5% = 0.05n = 15Substituting these values into the formula, we get:$8650 = R * [(1 + 0.05/2)^(15*2) - 1] / (0.05/2)$8650 = R * [(1.025)^30 - 1] / 0.025$8650 = R * 29.455R = $8650 / 29.455R = $469.94

You Deposit $R Every 6 Months in a Fund Earning