document.write( "Question 1186452: Christian deposits P 300 at the end of each quarter in his savings account. If the account earns 5.75% yearly, how much money will he has in 4 years? \n" ); document.write( "
Algebra.Com's Answer #817362 by ikleyn(52803)\"\" \"About 
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\n" ); document.write( "Christian deposits P 300 at the end of each quarter in his savings account.
\n" ); document.write( "If the account earns 5.75% yearly, how much money will he has in 4 years?
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document.write( "It is a classic Ordinary Annuity saving plan. The general formula is \r\n" );
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document.write( "    FV = \"P%2A%28%28%281%2Br%29%5En-1%29%2Fr%29\",    (1)\r\n" );
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document.write( "where  FV is the future value of the account;  P is your quarterly payment (deposit); \r\n" );
document.write( "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" );
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document.write( "Under the given conditions, P = 300;  r = 0.0575/4;  n = 4*4 = 16.  \r\n" );
document.write( "So, according to the formula (1), Christian will get at the end of the 4-th year\r\n" );
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document.write( "    FV = \"300%2A%28%28%281%2B0.0575%2F4%29%5E%284%2A4%29-1%29%2F%28%280.0575%2F4%29%29%29\" =  P5353.89.\r\n" );
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document.write( "Note that Christian will deposit only  4*4*P300 = P4800 in 4 years.  \r\n" );
document.write( "The rest is what the account earns/accumulates in 4 years.\r\n" );
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\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
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\n" ); document.write( "\n" ); document.write( "The lessons contain  EVERYTHING  you need to know about this subject,  in clear and compact form.\r
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\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
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