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You wish to accumulate a total of $6,400 for a special purpose. You will make deposits quarterly, with the first one exactly 8 quarters from
You wish to accumulate a total of $6,400 for a special purpose. You will make deposits quarterly, with the first one exactly 8 quarters from now and the last one, when you withdraw your desired accumulation, exactly 12 years from now. The savings rate is 8.80% compounded quarterly. How much is each deposit?
I have the answer key to study with, and know that the answer is $98. I just don't know the steps to solve this problem.
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