The question is incomplete. The complete question is :
To save money for his daughter's college tuition, Dan invests $269 every quarter in an annuity that pays 6.9% interest, compounded quarterly. Payments will be made at the end of each quarter. Find the total value of the annuity in 20 years.
Solution :
Given :
Annuity = $ 269
Compounded quarterly for 20 years, so N = 4 x 20 = 80
Rate of interest = [tex]$\frac{6.90 \%}{4}$[/tex]
= 1.725 %
We know Future value of the annuity is given by :
[tex]$FV= \text{Annuity} \times \frac{(1+R)^{N-1}}{R}$[/tex]
[tex]$FV= \text{269} \times \frac{(1+1.725\%)^{80-1}}{1.725\%}$[/tex]
[tex]$=269 \times 169.762413$[/tex]
= 45666.09
So the total value of he annuity is $45,666.09
