Posted by **Scott Ingraham** on Saturday, April 12, 2008 at 9:50pm.

Victore French mad a deposit of 5000 at the end of ech quarter to book bank, which pays 8% intrest compounded quarterly. After 3 years, Victor made no more depostis. What will be the banance in the account 2 years after the last deposit. I have not a clue on how to figure this one out here. I dont know if i have to set up a time line again here or not. I am using a texas instruments calculator here to figure these out on that. HELP

- Annuities -
**Damon**, Sunday, April 13, 2008 at 5:52am
It is a sinking fund for 3 years (12 payments of 2% each). Get the value of the sinking fund after the three years of deposits and interest payments.

Then it becomes a plain old compound interest deposit. After two years multiply the sinking fund mount by 1.02^8

- Annuities -
**tchrwill**, Sunday, April 13, 2008 at 11:35am
Victore French mad a deposit of $5000 at the end of each quarter to book bank, which pays 8% intrest compounded quarterly. After 3 years, Victor made no more deposits. What will be the balance in the account 2 years after the last deposit.

The 3 year accumulation is considered an Ordinary Annuity the final amount of which is derived from

S = R[(1+i)^n - 1]/i where S = the total accumulated sum, R = the periodic rent, or payment, n = the number of payments and i = the periodic interest = I/100(4).

Thus, S(12) = 5000[(1.02)^12 - 1]/.02.

The further growth of the final amount, S(12), 2 years after the last deposit derives from S = P(1+i)^n.

Therefore, S = S(12)(1.02)^8

- Annuities -
**Rickter**, Sunday, March 20, 2011 at 10:41pm
i meant the guys above sorry bout that.

- Annuities -
**Homie**, Sunday, March 20, 2011 at 11:02pm
Rickter is right the answer is 78574.78785

i got that by using 5000*13.4121 which gave me 67060.50 then 67060.50*1.1717= 78574.78785 whish is the answer.

1st you use amount of annuity chart and then you use sinking fund value.

The other guys are stupid. show the answers next time.

## Answer this Question

## Related Questions

- Annuities - Vic French mad deposits of 5000 at the end of each quarter to book ...
- Finance - Bob Bryan made deposits of $10,000 at the end of each quarter to Lion ...
- pride - you deposit 7900 in a money market account that pays a intrest rate of 4...
- Math - You plan to make 24 equal quarterly payments (payments are at the end of ...
- Mathematics and investment - 1. Angelo wants to renovate his house in 3 years. ...
- Math help - You plan to make 24 equal quarterly payments (payments are at the ...
- math - How much money must you deposit now at 6% interest compounded quarterly ...
- business - Susie has decided to make deposits at the end of each quarter in the ...
- Please help! - If your bank paid simple intrest Of 4.25% compounded annually ...
- Annuities - Jane Frost wants to receive yearly payments of 15000 for 10 years. ...

More Related Questions