How much would have to be invested at the end of each quarter, at 6% annual interest compounded quarterly, in order to save $30,000 at the end of five years?

Finance Jan 13, 2021

Expert Solution

Rate per quarter =6%/4 =1.5%
Number of Quarters =5*4 =20
FV =30000
Amount to be invested at the end of each quarter=FV/((1+r)^n-1)/r) =30000/((1+1.5%)^20-1)/1.5%) =1297.37

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