Leslie McCormack is in the spring quarter of her freshman year of college. She a

Question

Leslie McCormack is in the spring quarter of her freshman year of college. She and her friends already are planning a trip to Europe after graduation in a little over three years. Leslie would like to contribute to a savings account over the next three years in order to accumulate enough money to take the trip. Assume an interest rate of 16%, compounded quarterly. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

How much will Leslie accumulate in three years by depositing $520 at the beginning of each of the next 12 quarters? (Round your final answers to nearest whole dollar amount.)

Explanation / Answer

total amount of savings with interest equals the following p 520 r 0.16 n 12 formula p(1+r/n)^nt = 6253.24

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