Question

Stephanie deposits $1819 at the end of each quarter, increasing the deposit by $149 per quarter....

Stephanie deposits $1819 at the end of each quarter, increasing the deposit by $149 per quarter. How much will Stephanie have at the end of 3 years if the bank pays a nominal annual rate of 6% compounded quarterly?

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Answer #1

$ 34,064.66

Quarter Cash Flow Future Value of 1 Future Value of Cash Flow
a b c=(1+0.015)^(12-a) d=b*c
1 1,819.00 1.1779 2,142.69
2 1,968.00 1.1605 2,283.94
3 2,117.00 1.1434 2,420.56
4 2,266.00 1.1265 2,552.63
5 2,415.00 1.1098 2,680.28
6 2,564.00 1.0934 2,803.59
7 2,713.00 1.0773 2,922.67
8 2,862.00 1.0614 3,037.62
9 3,011.00 1.0457 3,148.54
10 3,160.00 1.0302 3,255.51
11 3,309.00 1.0150 3,358.64
12 3,458.00 1.0000 3,458.00
Total 34,064.66
Quarterly interest rate = 6%/4
= 0.015
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