Posted by **Kate** on Wednesday, July 13, 2011 at 10:19am.

Sam gets deposits a total of $3500 every three months to the bank which earns a 6.5% p/a. After five years how much will he have in his account?

Ren wants to buy a new car that costs $26255, so, he would deposit money into his savings account with an interest rate of 3.9% p/a compounded every 4 months, this has been going on for two years now. Determine Ren’s regular payment to the bank?

- Math -
**MathMate**, Wednesday, July 13, 2011 at 11:41am
For Sam:

Use

F=R((1+i)^n-1)/i

F=future value

R=payment per period, $3500

i=interest, 0.065/4=0.01625

n=number of periods, 5*4=20

F=$81936 approx.

For Ren

Use the same formula for Sam, except

F=26255, i=0.013, n=2*3=6,

Find R. I get approx. $4236.

## Answer This Question

## Related Questions

- math - henrietta deposits $3500 to start a new bank account. it earns a simple ...
- math - Ben deposits $400 into an account that earns 5% interest compounded ...
- Math - The winner of a popular lottery is offered one of two options: i) a lump ...
- math - A young executive deposits $400 at the end of each month for 7 years and ...
- Financial Math - A young executive deposits $400 at the end of each month for 9...
- finite math - A young executive deposits $400 at the end of each month for 7 ...
- math - Rochelle deposits $350 in an account that earns 6% annual interest, ...
- math - you deposit $ 900 in a savings account that earns 4%interest coumpounded ...
- Statistics - Mary has a savings account and is earning 10% annual interest ...
- differential equation - If P(t) is the amount of dollars in a savings bank ...

More Related Questions