7the future value of an annuity of 1000 each quarter for 10

7.the future value of an annuity of $1000 each quarter for 10 years, deposited at 12 percent compounded quarterly is a.$75,401 b.$17,549 c.$93,049 d.$11,200

Solution

Compute the future value of the annuity.

Payment (PMT) =$1000

Nper = 10*4 = 40 periods

Rate = 12/4 = 3%

Compute the future value using excel function,

Future value = FV(0.03,40,-1000,0) = $75,401.26.

Therefore, the future value of annuity is $75,401.

Therefore, the correct answer is option A.