Thermal Systems, a company that specializes in odor control for wastewater treatment plants, made deposits of $100,000 now and $25,000 every 6 months for 2 years. Determine the future worth after 2 years of the deposits for i = 16% per year, compounded quarterly.

What will be an ideal response?


PP = 6 months; CP = quarterly; need effective i per PP

i/6-mths = (1 + 0.08/2)2 -1 * 100
= 8.160%

F = 100,000(F/P,8.160%,4) + 25,000(F/A,8.160%,4)

Find answer by interpolation, formula, or spreadsheet.

Function: = - FV(8.16%,4,,100000) - FV(8.16%,4,25000) displays $249,776

F = $249,776

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