Lauren wants to save $300,000 to buy a restaurant 10 years from now. How much should she deposit

each quarter if the interest rate is 8% compounded quarterly?

Answer: $6444.14 would be deposited quarterly

Step-by-step explanation:

We would apply the formula for determining future value involving deposits at constant intervals. It is expressed as

S = R[{ (1 + r) ^n - 1) }/r][1 + r]

Where

S represents the future value of the investment.

R represents the regular payments made (could be weekly, monthly)

r = represents interest rate/number of interval payments.

n represents the total number of payments made.

From the information given,

S = $300000

r = 0.08/3 = 0.027

n = 3 * 10 = 30

Therefore,

300000 = R[{ (1 + 0.027) ^30 - 1) }/0.027][1 + 0.027]

300000 = R[{ (1.027) ^30 - 1) }/0.027][1.027]

300000 = R[{ (2.224 - 1) }/0.027][1.027]

300000 = R[{ (1.224) }/0.027][1.027]

300000 = R[45.33][1.027]

300000 = 46.55391R

R = 300000/46.55391

R = 6444.14