Answer
10.63 Quarters
Explanation
FV = $50,000
PMT = $3,000 per quarter
r = 9% / 4 = 2.25% per quarter
N = ??
We would use the future value ordinary annuity formula to calculate N ( The number of quarters)
FV = PMT [tex][\frac{(1+r)^{N} -1}{r} ][/tex]
50000 = 3000 [tex][\frac{(1+0.09)^{N} -1}{0.09} ][/tex]
([tex]\frac{50000}{3000}[/tex] x 0.09 ) + 1 = [tex]1.09^{N}[/tex]
[tex]1.09^{N}[/tex] = 2.5
N ㏑1.09 = ㏑2.5
N = ㏑2.5 / ㏑1.09
N = 10.63 Quarters
