Need help on a hard assignment question for Intro to Finance, any one?

[Shezan]

4) Mr. Moneybags has won a lottery. He had decided to take his winnings using a unique payment system for the next 5 years. In his first month he will receive $90. This annuity will grow at a rate of 0.25% per month. Mr. Moneybags plans to put these payments into an investment that will earn him 7.5% APR compounded quarterly. How much will he have from the lottery (based on the monthly payments and investing) at the end of the 5 years?

[bridgemagoo]

Your spreadshhet calculation will need 60 monthly receipts along the top starting at $90 and increasing by a factor of 1.0025 in each subsequent month. Downwards, each of these will then increase by a quarter of 7.5% (ie 1.875% so multiply by 1.01875 for the increased total amount) each quarter so $90 increases to 91.6875 after the first quarter, 93.40664 after trhe second etc. By copying this formula for each monthly receipt and totalling the results you should have your answer!!