You will deposit $1,200 at the beginning of every four years for 20 years. If the effective rate of interest is 6%, how much will you accumulate at the end of the 20 year period

Total FV= $14,011.21

Explanation:

Giving the following information:

Annual deposit= $1,200 (beginning)

Number of periods= 20 years

Interest rate= 6%

To calculate the total future value, we need to use the following formula on each deposit:

FV= [PV*(1+i)^n]

FV1= [1,200*(1.06^20)]

FV1= 3,848.56

FV2= [1,200*(1.06^16)]

FV2= 3,048.42

FV3= [1,200*(1.06^12)]

FV3= 2,414.64

FV4= [1,200*(1.06^8)]

FV4= 1,912.62

FV5= [1,200*(1.06^4)]

FV5= 1,514.97

FV6= [1,200*1.06]

FV6= 1,272

Total FV= $14,011.21

the answer is a. $209,000

hi : ) i found this so i hope this !

"we first find value of tax in dollars.

the difference between the two prices   is: 23. 54 - 22 = 1.54

therefore the sales tax in dollars is 1.54

the tax % will be   (amount of tax / original cost price ) × 100

(1.54 / 22) × 100  → (0.07) × 100 =   7

so the tax rate is 7%

we can double check the answer.

7 % of 22   → (7/100) × 22 → 0.07 × 22 = 1.54

22 + 1.54 = 23.54"