I'm struggling in this Business Math course. Can someone please help me with this annuity problem?

Victor French made deposits of $4,700 at the end of each quarter to Book Bank, which pays 8% interest compounded quarterly. After 4 years,Victor made no more deposits. What will be the balance in the account 3 years after the last deposit?

Question

I'm struggling in this Business Math course. Can someone please help me with this annuity problem?

Victor French made deposits of $4,700 at the end of each quarter to Book Bank, which pays 8% interest compounded quarterly. After 4 years,Victor made no more deposits. What will be the balance in the account 3 years after the last deposit?

aum · Answer

Use the formula for calculating future value of an ordinary annuity for the first 4 years.  This balance will now be compounded quarterly over the next 3 years.  Use the compound interest formula to calculate the balance after 3 years of compounding.