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Math

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Roiger made deposits of $900 semiannually to the bank, which pays 6% interest compounded semiannually. After 7 yrs., he makes no more deposits. What would be the balance in the account 8 yrs. later from the last deposit?

  • Math - ,

    Didn't you ask the same question on Tuesday ?

    http://www.jiskha.com/display.cgi?id=1312312482

  • Math - ,

    "Yes but the answer didn't make sense and in fact, was not what my professor was looking for.

  • Math - ,

    You are right, after I read it more carefully, one tiny change has to be made

    Instead of

    Amount at the last deposit
    = 900[ 1.03^14 - 1]/.03 = 15377.69

    Value at the end of 8 years = 15377.69(1.03)^2 = 16314.19
    change it to:


    Amount at the last deposit
    = 900[ 1.03^14 - 1]/.03 = 15377.69

    Value 8 years after last deposit = 15377.69(1.03)^16 = 24676.68


    Notice I changed the exponent of 2 in the last line to 16
    I had it as 8 years from now, instead of 8 years after the last deposit.

  • Math - ,

    Thank you I believe that's what I got and now it makes sense. Thanks

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