Barney and Bambi are new parents. Their daughter, Barramundi, was born today. Barney and Bambi want Barramundi to have one million dollars on her 40th birthday. To save enough, Barney and Bambi will make equal sized quarterly deposits. The first one will be in one quarter, and the last one will be on Barramundi's 40th birthday. Suppose the interest rate is 2% simple quarterly rate. How large do the deposits have to be in order to have one million dollars in forty years?

Answer rating: 100% (QA)

To solve this problem we can use the following formula for simple interest I P r t where I is the ... View the full answer