Question

Find the future value of the annuity due for $200 deposited at the beginning of each quarter for 12 years at 7% compounded quarterly.

Answer 1

Assuming there are 4 quarters in a year, the amount of time needed would have to be 4x 12 years, so that we can slpit up the time evenly. So your equation would look like this:

y=200(1.07)^48
y= about $5,145