nancy deposits $300 into her savings account at the end of 3 months for 2 years. if the account pays 3.5% per annum, compounded quarterley, how much money will nancy have in her account at the end of 3 years

Question

nancy deposits $300 into her savings account at the end of 3 months for 2 years. if the account pays 3.5%  per annum, compounded quarterley, how much money will nancy have in her account at the end of 3 years

anonymous · Answer

2 yaers*

anonymous · Answer

Brute force: take each deposit, D(I), figure how many quarters it will be in the bank and figure its final value as F(I) = D(I)(1+0.035/4)^Q,
where Q is the number of quarters until the end of the period. Add up all the F(I).