Question 6 2 pts A quarterly deposits are made into an account paying 6% per year compounded monthly

Economics Aug 06, 2020

Question 6 2 pts A quarterly deposits are made into an account paying 6% per year compounded monthly. If the objective of these deposits is to accumulate $100,000 by the end of the six years, what is the amount of each deposit? O $1500 $3695 O $1372 O $3489

Expert Solution

quarterly rate=(1+(6%/12))^3-1=1.5075%

size of each deposit

=100000/(((1+1.5075%)^(6*4)-1)/1.5075%)

=3489

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