Question

Madeline and Jonathan want to purchase a home in eight years. They will contribute $450 each month to a savings account with 4.15% interest compounded quarterly. What is the future value of this investment when Madeline and Jonathan need to make a down payment? (show work)

A= $16,975.13
B= $50,925.38
C= $51,453.73

Answer 1

They contribute quarterly
450×3=1350
So the future value
1,350×(((1+0.0415÷4)^(4×8)
−1)÷(0.0415÷4))=50,925.38

Hope it helps:-)