To attend school, Sam deposits $1500 at the end of ever six months for four and one-half years. What is the accumulated value of the deposits if interest is 6% p.a. compounded quarterly? 6%/4=1.5% = 0.015 every quarter (3 months)

To attend school, Sam deposits $1500 at the end of ever six months for four and one-half years. What is the accumulated value of the deposits if interest is 6% p.a. compounded quarterly? 6%/4=1.5% = 0.015 every quarter (3 months)

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 13PROB

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Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

Question

➤To attend school, Sam deposits $1500 at the end of every
six months for four and one-half years. What is the
accumulated value of the deposits if interest is 6% p.a.
compounded quarterly?
6%/4 1.5% = 0.015 every quarter (3 months)

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