Problema Solution
The Skase family require $30 000 in 5 years time to holiday on the island of Mallorca. They deposit quarterly payment paid into a bank account paying 4.8% per annum compound quarterly. Calculate the amount of the quarterly payment.
Answer provided by our tutors
The quarterly payment is $360
Solution: The total deposit is 30,000
The annum rate is 4.8%, quarter rate is 1.2%
30,000x1.2%=360