Annuities

posted by .

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 don't 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 -

    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 -

    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 -

    i meant the guys above sorry bout that.

  • Annuities -

    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.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Annuities

    Vic French mad deposits 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?
  2. FINANCE

    You deposit $2,000 in an account that pays 8% interest compounded semiannually. After 4 years, the interest rate is increased to 8.28% compounded quarterly. What will be the value of the account after 4 more years?
  3. Alg2

    Help....Help... Suppose you deposit a principal amount of p dollars in a bank account that pays compound interest. If the annual interest rate r (expressed as a decimal) and the bank makes interest payments n times every year, the …
  4. Alg 2

    Suppose you deposit a principal amount of p dollars in a bank account that pays compound interest. If the annual interest rate r (expressed as a decimal) and the bank makes interest payments n times every year, the amount of money …
  5. Finance

    Bob Bryan made deposits of $10,000 at the end of each quarter to Lion Bank, which pays 8% interest compounded quarterly. After 9 years, Bob made no more deposits. What will be the account's balance 4 years after the last deposit?
  6. pride

    you deposit 7900 in a money market account that pays a intrest rate of 4.3% the intrest is compounded quarterly how much money will you have after 3 years
  7. business

    Susie has decided to make deposits at the end of each quarter in the amout of $5,000. After three years, she makes more deposits and just lets the money sit there for two more years. What will be the balance in the account at the end …
  8. Mathematics and investment

    1. Angelo wants to renovate his house in 3 years. He estimates the cost 300,000. How much must Angelo invest now at 8% compounded quarterly in order to have 300,000 3 years from now. 2. Angelo Ancis want to save 500,000 in 5.5 years …
  9. Math

    You plan to make 24 equal quarterly payments (payments are at the end of each period) into an account to pays 8% (per year compounded quarterly). If you need $5,000 at the end of 10 years (i.e. 4 years after the last payment is made …
  10. Math help

    You plan to make 24 equal quarterly payments (payments are at the end of each period) into an account to pays 8% (per year compounded quarterly). If you need $5,000 at the end of 10 years (i.e. 4 years after the last payment is made …

More Similar Questions