document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1206514>Question 1206514</A>: <I><SPAN STYLE=\"word-break: break-all;\"> If you make quarterly deposits of $407<BR>\n" );
document.write( " into an ordinary annuity earning an annual interest rate of 6.52%<BR>\n" );
document.write( ", how much will be in the account after 8<BR>\n" );
document.write( " years? How much interest did you earn in those 8<BR>\n" );
document.write( " years?<BR>\n" );
document.write( "How much is in the account after 8<BR>\n" );
document.write( " years? \r<BR>\n" );
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document.write( "How much interest was earned after <BR>\n" );
document.write( " 8 years? <BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #844048 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=844048\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> you make deposits at the end of each quarter of 407.<BR>\n" );
document.write( "the annual interest rate is 6.52%<BR>\n" );
document.write( "the interest rate, which is compounded quarterly, is equal to 6.52 / 4 = 1.63% per month.\r<BR>\n" );
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document.write( "you can use the calculator at <a  rel=nofollow HREF= \"https://arachnoid.com/finance/\" target = \"_blank\">https://arachnoid.com/finance/</a> to help solve this.\r<BR>\n" );
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document.write( "the inputs to that calculator will be:<BR>\n" );
document.write( "present value = 0<BR>\n" );
document.write( "future value = 0<BR>\n" );
document.write( "interest rate per time period = 6.52 / 4 = 1.63%<BR>\n" );
document.write( "number of time periods = 8 * 4 = 32<BR>\n" );
document.write( "payments are 407 per time period and are made at the end of each time period.\r<BR>\n" );
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document.write( "you click on fv and the calculator tells you that the future value is equal to 16,920.49.<BR>\n" );
document.write( "that's how much is in the account after 8 years.\r<BR>\n" );
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document.write( "here's what it looks like on that calculator.\r<BR>\n" );
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document.write( "the values from that calculator are rounded to the nearest penny.<BR>\n" );
document.write( "the unrounded value of that is 16,920.48801 that i got from my ti-ba-2 business analyst calculator.\r<BR>\n" );
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document.write( "i also used excel to provide the same analysis.<BR>\n" );
document.write( "it provides the same results, when rounded to the nearest penny, as shown below.\r<BR>\n" );
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document.write( "answers to your questions are:\r<BR>\n" );
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document.write( "how much will be in the account after 8<BR>\n" );
document.write( "years? \r<BR>\n" );
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document.write( "16920.49 will be in the account after 8 years.\r<BR>\n" );
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document.write( "How much interest did you earn in those 8<BR>\n" );
document.write( "years?\r<BR>\n" );
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document.write( "interest you earned was how much was in the account after 8 years minus the sum of your payments for 32 quarters = 16920.49 minus 32 * 407 = 3896.49.\r<BR>\n" );
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