document.write( "Question 1131683: Determine the amount of the ordinary annuity at the end of the given period. (Round your final answer to two decimal places.)
\n" ); document.write( "$400 deposited quarterly at 6.4% for 8 years
\n" ); document.write( "$
\n" ); document.write( " \n" ); document.write( "
Algebra.Com's Answer #748567 by ikleyn(52839)\"\" \"About 
You can put this solution on YOUR website!
.
\n" ); document.write( "
\r\n" );
document.write( "It is a classic Ordinary Annuity saving plan. The general formula is \r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "    FV = \"P%2A%28%28%281%2Br%29%5En-1%29%2Fr%29\",    (1)\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "where  FV is the future value of the account;  P is your quarterly payment (deposit); r is the quarterly percentage yield presented as a decimal; \r\n" );
document.write( "n is the number of deposits (= the number of years multiplied by 4, in this case).\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "Under the given conditions, P = 400;  r = 0.64/4;  n = 4*8 = 32.  So, according to the formula (1), you get at the end of the 20-th year\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "    FV = \"400%2A%28%28%281%2B0.064%2F4%29%5E%284%2A8%29-1%29%2F%28%280.064%2F4%29%29%29\" = \"400%2A%28%281.016%5E32-1%29%2F0.016%29\" = $16546.90.\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "Note that you deposit only  4*8*$400 = $12,800.  The rest is what the account earns/accumulates in 8 years.\r\n" );
document.write( "
\r
\n" ); document.write( "\n" ); document.write( "-----------------\r
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( "On Ordinary Annuity saving plans,  see the lessons\r
\n" ); document.write( "\n" ); document.write( "    - Ordinary Annuity saving plans and geometric progressions\r
\n" ); document.write( "\n" ); document.write( "    - Solved problems on Ordinary Annuity saving plans\r
\n" ); document.write( "\n" ); document.write( "in this site.\r
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( "The lessons contain  EVERYTHING  you need to know about this subject,  in clear and compact form.\r
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( "When you learn from these lessons,  you will be able to do similar calculations in semi-automatic mode.\r
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( " \n" ); document.write( "
\n" );