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A Student Wishes to Accumulate $4000 by Making Quarterly Deposits

Question 61

Multiple Choice

A student wishes to accumulate $4000 by making quarterly deposits of $200 into an account,first deposit made on January 1,2011.The account earns interest at j4 = 6%.What is the size of the final,smaller quarterly deposit (drop payment) and on what date will this final deposit be made?


A) A final deposit of $159.73 is made on July 1,2015
B) A final deposit of $102.12 is made on July 1,2015
C) A final deposit of $159.73 is made on April 1,2015
D) A final deposit of $102.12 is made on April 1,2015

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