company expansion

Question

Apex Fabricating wants to accumulate $545,000 for an expansion expected to begin in four years.

If today Apex makes the first of equal quarterly payments into a fund earning 6.6% compounded monthly, what should the size of these payments be? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Answer 1

Hello Maliha, I am not a math tutor, but there are many online calculators, in your case financial/investment ones, that should be pretty easy to use. You just have to match each value in your problem to the variables offered in the calculator, leaving the final variable, the periodic payment (16 payments). The one tricky part is if any of these have the ability to calculate quarterly payments that are compounded monthly! Maybe this is the very reason you posted this question... http://www.calculator.net/finance-calculator.html http://tcalc.timevalue.com/ http://www.bankrate.com/calculators/retirement/investment-goal-calculator.aspx You might also try searching "quarterly payment compound monthly calculat" Good luck, "Gabriel" (Gregg Schmidt on my WyzAnt profile)