Answer to Question #89685 in Financial Math for Paige

Question

Monique deposited $1,800 at the beginning of each quarter for 6 years into an IRA. Given an interest rate of 6% compounded quarterly, find the future value.

Answer 1

$$FV = \frac{1800×((1 + 0.06/4)^{24}-1) }{0.06/4} = 51,540.34.$$

We use the formula for the future value of the annuity.