4. As part of your retirement planning, you purchase an annuity that pays 4 % annual interest compounded quarterly
a. If you make quarterly payments of $900 how much will you have saved in 5
years?
b. Instead, if you make quarterly payments of $450, how much will you have saved
in 10 years?

9514 1404 393

  a.  $19817.10

  b.  $21998.87

Step-by-step explanation:

The formula for the future value of an annuity with payments "A" and interest at rate r compounded quarterly for t years is ...

  FV = A((1 +r/4)^(4t) -1)/(r/4)

The attachment shows this evaluated for ...

a. A = 900, r = 0.04, t = 5. FV = $19817.10

b. A = 450, r - 0.04, t = 10. FV = 21,998.87

c.

step-by-step explanation:

because first you have to add the 4x, 9x, and the 7x together and you get 20x and then you add the last numbers up and you get 5and then you put the subtraction sign in there and that's how you get the answer.

no solution

step-by-step explanation:

there is not enough information in the problem to solve.