Question

The future value of an annuity of $1,000 each quarter for 10 years, deposited at 12 percent compounded quarterly is

Answer 1

The future value of the quarterly annuity compounded every quarter is $75,401.26.

What is the future value of the quarterly annuity?

The formula that can be used to determine the future value of the quarterly annuity is: Amount x annuity factor

Annuity factor = {[(1+r)^n] - 1} / r

Where:

• r = interest rate = 12% / 4 = 3%
• n = number of years = 10 years x number of compounding = 10 x 3 = 30 years

Annuity factor ={ [(1.03)^40] - 1/} 0.03 = 75.401260

Future value = 75.401260 x 1000 = $75,401.26.

To learn more about future value, please check: https://brainly.com/question/18760477