Edward wants to accumulate $44,000 in a fund with payments of $1,500 made at the end of every quarter. The interest rate is 6.25% compounded quarterly.
a. How many payments (rounded up to the next payment) will it take to accumulate this amount?
• 29 payments
0 18 payments
• 24 payments
• 25 payments
b. How long will it take to accumulate this amount?
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a. It will take **25 payments** to accumulate $44,000.

b. It will take **6.25 years** to accumulate this amount.

Would you like more details or have any questions? 

Here are some questions you can ask next:
1. How do you derive the formula for the future value of an annuity?
2. Can you explain the concept of compound interest?
3. What is the difference between ordinary annuities and annuities due?
4. How does changing the interest rate affect the number of payments required?
5. Can you show the calculations for a different interest rate?

**Tip:** Always double-check your interest rate conversions, especially when dealing with different compounding periods.

Discover how to accumulate $44,000 by making quarterly payments of $1,500 with a 6.25% interest rate compounded quarterly. Understand the calculations involved, including the number of payments required and the time it takes to reach the goal. Suitable for adult learners interested in finance and compound interest concepts.

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