How much money will he need to deposit into the annuity each quarter for the annuity to have a total value of $24,000 after 7 years? Do not round intermediate computations, and round your final answer to the nearest cent. If necessary, refer to the list of financial formulas.
How much money will he need to deposit into the annuity each quarter for the annuity to have a total value of $24,000 after 7 years? Do not round intermediate computations, and round your final answer to the nearest cent. If necessary, refer to the list of financial formulas.
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter4: Managing Your Cash And Savings
Section: Chapter Questions
Problem 7FPE: Calculating interest earned and future value of savings account. If you put 6,000 in a savings...
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.
**Input Field:**
[$_________________]
**Additional Information:**
- Interest Rate: 4.8% annually, compounded quarterly
- Duration: 7 years
- Total Future Value: $24,000
To solve this, you need to determine the quarterly deposit amount that will grow to $24,000 over 7 years with the given interest rate.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fae063e21-e069-49f8-ad73-1d555b7f1041%2Ff9205821-4a4d-421f-9005-5afe4d34a2cd%2Fll96zoh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Ordinary Annuity Savings Calculation**
Josh has always dreamed of opening a café by the seaside. To save for this goal, he decides to start an ordinary annuity. An ordinary annuity earns 4.8% interest, compounded quarterly, with deposits made at the end of each quarter.
**Question:**
How much money will Josh need to deposit each quarter into the annuity for it to have a total value of $24,000 after 7 years?
**Instructions:**
Do not round intermediate computations, and round your final answer to the nearest cent. If necessary, refer to the [list of financial formulas](#).
**Input Field:**
[$_________________]
**Additional Information:**
- Interest Rate: 4.8% annually, compounded quarterly
- Duration: 7 years
- Total Future Value: $24,000
To solve this, you need to determine the quarterly deposit amount that will grow to $24,000 over 7 years with the given interest rate.
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