Deposits of $R Are Made Every 3 Months Starting June

question 27

Multiple Choice

Deposits of $R are made every 3 months starting June 15,2010 in a fund paying interest at j₄ = 8%.Immediately after the deposit on December 15,2018,there is $40,000 in the fund.What is R?

• A)$800.09
• B)$832.75
• C)$867.46
• D)$943.85

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Definitions:

Arithmetic Average Return

The sum of returns in each period divided by the number of periods, often used to calculate the average return of an investment.

Multi-year Period

An extended timeframe that spans over multiple years, often used in the context of financial planning or contracts.

Variance

A numerical indicator representing the variance within a dataset, highlighting the extent to which the values deviate from the mean.

Squared Deviation

The squared difference between a specific value and a comparison value, commonly used in statistics to measure variability.