Dalia Ramirez Anchondo deposits $ 200 into her savings annuity every paycheck. She gets paid weekly. The credit union will pay Dalia 4% compounded quarterly. What is the future value of Dalia in 4 years. Help me

$41,418.96‬

Explanation:

There are four quarters in a year and the interest rate is a yearly rate that should be converted to a quarterly rate:

= 4% / 4

= 1%

Delia gets paid $200 a week. There are 12 weeks in a quarter so the quarterly contribution is:

= 200 * 12

= $2,400

The number of quarters she invests is:

= 4 * 4years

= 16 quarters

As this payment is constant, it is an annuity.

Value after 4 years will be:

= Annuity * Future value interest factor of annuity, 1%, 16 periods

= 2,400 * 17.2579

= $41,418.96‬

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