Question 1148190
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<pre>
It is a classic Ordinary Annuity saving plan. The general formula is 


    FV = {{{P*(((1+r)^n-1)/r)}}},    (1)


where  FV is the future value of the account;  P is your quarterly payment (deposit); r is the quarterly percentage yield presented as a decimal; 
n is the number of deposits (= the number of years multiplied by 4, in this case).


Under the given conditions, P = 960;  r = 0.051/4;  n = 4*4 = 16.  So, according to the formula (1), you get at the end of the 4-th year


    FV = {{{960*(((1+0.051/4)^(4*4)-1)/((0.051/4)))}}} = $16919.93.


Note that you deposit only  4*4*$960 = $15360.  The difference 

    16919.93 - 15360 = 1559.93 dollars

is the interest which the account earns/accumulates in 4 years.     <U>ANSWER</U>
</pre>

Solved.


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On Ordinary Annuity saving plans, &nbsp;see the lessons

&nbsp;&nbsp;&nbsp;&nbsp;- <A HREF=http://www.algebra.com/algebra/homework/Sequences-and-series/Ordinary-Annuity-saving-plans-and-geometric-progressions.lesson>Ordinary Annuity saving plans and geometric progressions</A>

&nbsp;&nbsp;&nbsp;&nbsp;- <A HREF=https://www.algebra.com/algebra/homework/Sequences-and-series/Solved-problem-on-Ordinary-Annuity-saving-plans.lesson>Solved problems on Ordinary Annuity saving plans</A>

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