Solve the problem. Round to the nearest cent.
-Mary needs $9000 in 6 years. What amount can she deposit in a sinking fund at the end of each Quarter at 5% interest compounded quarterly so she will have her $9000?
A) $1323.16
B) $308.90
C) $323.88
D) $340.17

Question

Quizplus · Accepted Answer

To find the amount Mary needs to deposit each quarter, we use the formula for the future value of an ordinary annuity: FV = Pmt * [(1 + r)^nt - 1] / r. Here, FV = $9000, r = 0.05/4 = 0.0125, n = 4 quarters per year, t = 6 years. Solving for Pmt gives approximately $323.88.

Solve the Problem. Round to the Nearest Cent