A series of equal end-of-quarter deposits of$4,000 extends over a period of five years. It isdesired to compute the future worth of this quarterlydeposit series at 9% compounded monthly. Which ofthe following equations is correct?(a) F = $4,000(F/A, 2.25%, 20)(b) F = 4($4,000)(F/A, 9%, 5)(c) F = $4,000(F/A, 2.267%, 20)(d) F = 4($4,000)(F/A, 0.75%, 20)
A series of equal end-of-quarter deposits of$4,000 extends over a period of five years. It isdesired to compute the future worth of this quarterlydeposit series at 9% compounded monthly. Which ofthe following equations is correct?(a) F = $4,000(F/A, 2.25%, 20)(b) F = 4($4,000)(F/A, 9%, 5)(c) F = $4,000(F/A, 2.267%, 20)(d) F = 4($4,000)(F/A, 0.75%, 20)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A series of equal end-of-quarter deposits of
$4,000 extends over a period of five years. It is
desired to compute the future worth of this quarterly
deposit series at 9% compounded monthly. Which of
the following equations is correct?
(a) F = $4,000(F/A, 2.25%, 20)
(b) F = 4($4,000)(F/A, 9%, 5)
(c) F = $4,000(F/A, 2.267%, 20)
(d) F = 4($4,000)(F/A, 0.75%, 20)
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