Answer:
Deposit each quarter = $342.68
Step-by-step explanation:
Formula use in this problem:
[tex] FV=C\times \left [ \frac{(1+i)^n-1}{i} \right ]\times (1+i) [/tex]
Where,
FV is future value, FV=$3000
C is cash flow quarterly( need to find),C=?
I is rate of interest ( divide by 4), i=[tex] \frac{0.08}{4}=0.02 [/tex]
N number of cash flow, n=8
Substitute all these values into formula to solve for C
[tex] 3000=C\times \left [ \frac{(1+0.02)^8-1}{0.02} \right ]\times (1+0.02) [/tex]
[tex] C=\frac{3000\times 0.02}{[(1+0.02)^8-1]\times (1+0.02)}[/tex]
So, C=$342.68
