Answer:
She should deposit $ 759 at the end of each quarter in an account.
Step-by-step explanation:
This problem requires us to calculate the amount that we should invest quarterly if the investment rate is 3.2% and we want 20,000 dollars after 6 years. This can be calculate easily with the help of annuity formula given below.
Future Value= Installment ((1+ interest rate)^time period-1)/interest rate
20,000 = Deposit ((1+ 3.2%/4)^24-1)/3.2%/4
PV = 20,000/26.34
PV = $ 759
