document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1196378>Question 1196378</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Jonathan obtained his degree and started his own consulting company in January of 2010. At the end of each month he began saving R2 480.00 in his account and requested the bank to quarterly debit three month sum of his exact savings towards his individual retirement account for a total period of ten years. The retirement account earned interest at 11% per annum, compounded quarterly. The amount that was available to him after ten years in the retirement account is </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #848415 by </B><A HREF=/tutors/aboutme.mpl?userid=ElectricPavlov><B>ElectricPavlov(122)</B></A><img src=\"/images/stars/stars-09.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=ElectricPavlov><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/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=848415\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> **1. Calculate Quarterly Deposits:**\r<BR>\n" );
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document.write( "* Monthly Savings: R2 480.00<BR>\n" );
document.write( "* Quarterly Savings: R2 480.00/month * 3 months/quarter = R7 440.00\r<BR>\n" );
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document.write( "**2. Calculate the Number of Quarters:**\r<BR>\n" );
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document.write( "* 10 years * 4 quarters/year = 40 quarters\r<BR>\n" );
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document.write( "**3. Calculate the Quarterly Interest Rate:**\r<BR>\n" );
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document.write( "* Annual Interest Rate: 11%<BR>\n" );
document.write( "* Quarterly Interest Rate: 11% / 4 = 2.75%\r<BR>\n" );
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document.write( "**4. Calculate the Future Value of the Annuity**\r<BR>\n" );
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document.write( "* Use the formula for the future value of an ordinary annuity:\r<BR>\n" );
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document.write( "   * **FV = P * [(1 + r)^n - 1] / r** <BR>\n" );
document.write( "      * where:<BR>\n" );
document.write( "         * FV = Future Value<BR>\n" );
document.write( "         * P = Quarterly Payment (R7 440.00)<BR>\n" );
document.write( "         * r = Quarterly Interest Rate (0.0275)<BR>\n" );
document.write( "         * n = Number of Quarters (40)\r<BR>\n" );
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document.write( "* **Calculate:** <BR>\n" );
document.write( "   * FV = R7 440.00 * [(1 + 0.0275)^40 - 1] / 0.0275<BR>\n" );
document.write( "   * FV = R7 440.00 * [2.9050 - 1] / 0.0275 <BR>\n" );
document.write( "   * FV = R7 440.00 * 69.2727 <BR>\n" );
document.write( "   * FV = R514 664.79\r<BR>\n" );
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document.write( "**Therefore, the amount available to Jonathan after ten years in his retirement account is approximately R514 664.79.**<BR>\n" );
document.write( " </SPAN>\n" );
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