Posted by Diane on Friday, August 5, 2011 at 2:29pm.
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  Reiny, Friday, August 5, 2011 at 3:51pm
Didn't you ask the same question on Tuesday ?
http://www.jiskha.com/display.cgi?id=1312312482

Math  Diane, Friday, August 5, 2011 at 4:10pm
"Yes but the answer didn't make sense and in fact, was not what my professor was looking for.

Math  Reiny, Friday, August 5, 2011 at 4:27pm
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  Diane, Friday, August 5, 2011 at 4:51pm
Thank you I believe that's what I got and now it makes sense. Thanks
Answer This Question
Related Questions
 Math  If you deposit $900 semiannually in a bank which pays 6% interest ...
 business math  roger fox made deposits of $ 900 semiannualy to Reel Bank which ...
 math  at the end of every 3 months, Rita deposits $100 into an account that ...
 Finance  Bob Bryan made deposits of $10,000 at the end of each quarter to Lion ...
 math  Semiannually deposits of $400 are made for 10 years into an annuity that ...
 math  Jacob Fonda deposited $25,000 in a savings account at 10% interest ...
 Business Math  Shelley Katz deposited $30,000 in a savings account at 5% ...
 math  Jacob Fonda deposited $25,000 in a savings account at 10% interest ...
 Math  Lee Holmes deposited $15,000 in a new savings account at 9% interest ...
 MATH HOMEWORK HELP PLEASE ANSWER  Lee Holmes deposited $15,000 in a new savings...
More Related Questions