Don contribute 200 at the end of each quarter to a Tax Sheltered Annuity (TSA). What will the value of the TSA be after the 80th deposit (20 years) if the per annum rate of return is assumed to be 7% compounded quarterly?
Suppose P is the deposit in dollars made at each payment period for an annuity paying i percent interest per payment period. The amount A of the annuity after n deposits is
This is an annuity with P = 200, n = 80, and i = . The value of the TSA after the 80th deposit is given below.