Suppose that Astoria Federal Bank pays 8% interest, compounded quarterly?how much should be deposited now to yield an annuity payment of $400 at the end of each three months, for 2 years. |
Suppose that Astoria Federal Bank pays 8% interest, compounded quarterly?how much should be deposited now to yield an annuity payment of $400 at the end of each three months, for 2 years. |
The answer is $2930.20.
The person above me used an 8% interest rate for each quarter - the annual rate is 8%, so the quarterly rate is 2%.
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