Posted by **plz help** on Saturday, April 30, 2011 at 6:16pm.

A house is rented for $2000 per quarter, with each quarter's rent payable in advance. If money is worth 2%, compounded quarterly, and the rent is deposited in an account, what is the future value of the rent for one year?

- math -
**MathMate**, Saturday, April 30, 2011 at 9:29pm
Assume 2% is per quarter (not per annum).

so R=1.02, n=4 quarters, and rent, P=$2000.

Future value

P(R+R^2+R^3+R^4)

= PR(1+R+R^2+R^3)

=PR (R^4-1)/(R-1)

=2000*1.02*(1.02^4-1)/(1.02-1)

=$8408.08

## Answer this Question

## Related Questions

- (basic)accounting help plz! - June 1: Rented office space and paid three months...
- math - Suppose a young couple deposits $700 at the end of each quarter in an ...
- math - Hello, I'm having a hard time fingering our this question. Not really ...
- Math - Meg's pension plan is an annuity with a guaranteed return of 7% per year...
- Finance - Find the least amount that could be deposited in a bank account today ...
- calculus - Meg's pension plan is an annuity with a guaranteed return of 4% per ...
- math 10 - Theo deposited $1,250 in a savings account that pays 6% interest, ...
- math - Meg's pension plan is an annuity with a guaranteed return of 6% per year...
- Business math - Meg's pension plan is an annuity with a guaranteed return of 3% ...
- college Accounting - The ledger of Piper Rental Agency on March 31 of the ...

More Related Questions