Question 1174589
.
<pre>

It is a classic Ordinary Annuity saving plan. The general formula is 


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


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


From this formula, you get for the quartely payment 


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


Under the given conditions, FV = $41,000;  r = 0.0425/4;  n = 5*4.  So, according to the formula (1), 
you get for the quarterly payment 


    P = {{{41000*(((0.0425/4))/((1+0.0425/4)^(5*4)-1)))}}} = $1850.73.


In all. you deposit  5*4*1850.73 = 37014.60 dollars to the account.


The rest, the complement to $41,000,  41000 - 37014.60 = 3985.40 dollars is the interest.


<U>Answer</U>.  The necessary quartely deposit value is $1850.73.
</pre>

---------


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>

in this site.


The lessons contain &nbsp;EVERYTHING &nbsp;you need to know about this subject, &nbsp;in clear and compact form.


When you learn from these lessons, &nbsp;you will be able to do similar calculations in semi-automatic mode.