Math Problem Statement
What is the accumulated value of periodic deposits of $5,000 made into an investment fund at the beginning of every quarter, for 5 years, if the interest rate is 2.75% compounded quarterly? Round to the nearest cent. Use python
Solution
The accumulated value of the periodic deposits of $5,000 made at the beginning of every quarter for 5 years, with an interest rate of 2.75% compounded quarterly, is $107,543.02.
Do you want details or have any questions?
Here are 5 numbered questions you might want to ask:
- How is the future value of an annuity calculated?
- Can you explain the formula used in this calculation?
- What if the deposits were made at the end of each period instead?
- How does the compounding frequency affect the accumulated value?
- Can you show a breakdown of the calculations for each period?
Tip: When dealing with investments, always consider the impact of the compounding frequency on the returns.
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Math Problem Analysis
Mathematical Concepts
Compound Interest
Annuities
Formulas
Future Value of Annuity formula
Theorems
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Suitable Grade Level
High School
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