Blake corey
New member
- Joined
- Feb 9, 2020
- Messages
- 16
1. In a series of quarterly payments of P950, at the beginning of quarter, for 12 years when money is worth 13% compounded quarterly, how much is accumulated (a) after the 30th payment? (b) at the end of the term?
What i did i start with The first payment is earning interest for 10 quarters The second payment is earning interest for 9 quarters up to until
Until the 9th payment, which earns one quarter of interest
10th payment doesnt earn any so i have
A(1.13)10 +A(1.13)9 +A(1.13)8 +...+A(1.13)1 +A(1.13)0
geometric sum with a=A, r=1.13, n=10
Not to sure if i'm correct to my answer
What i did i start with The first payment is earning interest for 10 quarters The second payment is earning interest for 9 quarters up to until
Until the 9th payment, which earns one quarter of interest
10th payment doesnt earn any so i have
A(1.13)10 +A(1.13)9 +A(1.13)8 +...+A(1.13)1 +A(1.13)0
geometric sum with a=A, r=1.13, n=10
Not to sure if i'm correct to my answer