Hui's retirement fund has an accumulated amount of $40,000. If it has been earning interest at 4.22% compounded monthly for the past 24 years, calculate the size of the equal payments that she deposited at the beginning of every 3 months.

Round to the nearest cent

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Hui's equal payments deposited at the beginning of every 3 months are $239.67.

Do you want details or have any questions?

Here are 5 numbered questions you can ask:

1. How is the interest rate adjusted for monthly compounding?
2. Can you explain the formula used to calculate the quarterly payments?
3. How does the compounding frequency affect the accumulated amount?
4. What would happen if the interest rate was higher or lower?
5. How do we handle different payment frequencies in such calculations?

**Tip:** Regularly reviewing your retirement plan can help ensure that your savings are on track to meet your goals.

Learn how to calculate equal payments for an annuity with compound interest using Hui's retirement fund as an example. The problem involves determining quarterly deposits to achieve a specified future value, with details on the compound interest formula and annuity calculations. Round to the nearest cent.

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