SOLUTION: Sam makes $442 contribution to a deposit account at the end of each quarter. The account earns 8% p.a. compounded quarterly. How much is the outstanding balance in 12 years?

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Question 1121085: Sam makes $442 contribution to a deposit account at the end of each quarter. The account earns 8% p.a. compounded quarterly. How much is the outstanding balance in 12 years?
Answer by ikleyn(52788) About Me  (Show Source):
You can put this solution on YOUR website!
.

It is called "Ordinary Annuity saving plan".

The formula is


        S = 442%2A%28%28%281%2B0.08%2F4%29%5E%284%2A12%29-1%29%2F%28%280.08%2F4%29%29%29 = 442%2A%28%281.02%5E48-1%29%2F0.02%29.


Use your calculator.

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To learn the subject,  read the lesson
    - Ordinary Annuity saving plans and geometric progressions
in this site.