document.write( "Question 1207413: Clark's younger brother saved $18 per month from his paper route for the past two years. If interest is 4% compounded quarterly, how much will he have accumulated in his savings account?
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Algebra.Com's Answer #845273 by ikleyn(52817)\"\" \"About 
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\n" ); document.write( "Clark's younger brother saved $18 per month from his paper route for the past two years.
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document.write( "It is equivalently to say that Clark deposits 18*3 = 54 dollars at the end of every quarter \r\n" );
document.write( "into the ordinary annuity, which provides 4% annually compounded quarterly.\r\n" );
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document.write( "So, apply the general formula for ordinary annuity future value\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 annuity;  P is the quarterly payment (deposit); \r\n" );
document.write( "r is the quarterly effective 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 = 18*3 = 54 dollars;  r = 0.04/4 = 0.01;  n = 2*4 = 8.  \r\n" );
document.write( "So, according to the formula (1), Clark's younger brother will get at the end of the 2-nd year\r\n" );
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document.write( "    FV = \"54%2A%28%28%281%2B0.01%29%5E%282%2A4%29-1%29%2F0.01%29%29\" =  447.43  dollars  (rounded to the closest cent).\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
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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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