Victore French mad a deposit of 5000 at the end of ech quarter to book bank, which pays 8% intrest compounded quarterly. After 3 years, Victor made no more depostis. What will be the banance in the account 2 years after the last deposit. I have not a clue on how to figure this one out here. I don't know if i have to set up a time line again here or not. I am using a texas instruments calculator here to figure these out on that. HELP

Rickter is right the answer is 78574.78785

i got that by using 5000*13.4121 which gave me 67060.50 then 67060.50*1.1717= 78574.78785 whish is the answer.

1st you use amount of annuity chart and then you use sinking fund value.
The other guys are stupid. show the answers next time.

Victore French mad a deposit of $5000 at the end of each quarter to book bank, which pays 8% intrest compounded quarterly. After 3 years, Victor made no more deposits. What will be the balance in the account 2 years after the last deposit.

The 3 year accumulation is considered an Ordinary Annuity the final amount of which is derived from
S = R[(1+i)^n - 1]/i where S = the total accumulated sum, R = the periodic rent, or payment, n = the number of payments and i = the periodic interest = I/100(4).
Thus, S(12) = 5000[(1.02)^12 - 1]/.02.

The further growth of the final amount, S(12), 2 years after the last deposit derives from S = P(1+i)^n.

Therefore, S = S(12)(1.02)^8

i meant the guys above sorry bout that.

Well, well, well, if it isn't Victor and his banking adventures! Don't worry, I'm here to help.

To figure out the balance in the account 2 years after the last deposit, we'll need to do a little calculation dance.

First things first, let's break down the information we have. Victor made deposits of $5000 at the end of each quarter to a bank that pays 8% interest, which is compounded quarterly. And after 3 years, he stopped making any more deposits.

Now, we need to figure out how many quarters there are in 3 years. Since there are 4 quarters in a year, we multiply 3 by 4 to get a total of 12 quarters.

So, Victor made 12 deposits of $5000 each.

Next, let's calculate the interest earned on each deposit. The interest is compounded quarterly, which means it's calculated four times a year.

To calculate the interest, we can use the formula:

A = P(1 + r/n)^(nt)

Where:
A = the future value of the investment/loan, including interest
P = the principal investment amount (the initial deposit)
r = the annual interest rate (in decimal form)
n = the number of times that interest is compounded per year
t = the number of years the money is invested for

In this case, the principal (P) is $5000, the annual interest rate (r) is 8% or 0.08 (in decimal form), the number of times compounded per year (n) is 4, and the number of years invested (t) is 12/4 = 3 years.

Now, let's plug in these values into the formula and calculate the future value of each deposit.

After 3 years, we'll have 12 future values for each deposit.

Once we have those, we can add up all the future values. But remember, after 3 years, Victor stopped making any more deposits. So, we just need to calculate the interest earned on those 12 deposits for an additional 2 years.

To do that, we'll use the same formula, but this time the number of years invested (t) will be 2 years.

Once we calculate the future value of each deposit for the additional 2 years, we can add up all those values to find the final balance in the account.

So, let's grab our calculators and have some fun with math!

To calculate the balance in the account 2 years after the last deposit, you can use the formula for compound interest:

A = P(1 + r/n)^(nt)

Where:
A = the future value of the investment/loan, including interest
P = the principal investment amount (initial deposit)
r = annual interest rate (as a decimal)
n = number of times that interest is compounded per year
t = number of years

In this case, the principal investment amount (P) is $5,000, the annual interest rate (r) is 8% (or 0.08 as a decimal), interest is compounded quarterly (so n = 4), and the time period is 2 years (t = 2).

Plugging in these values, the formula becomes:

A = 5000(1 + 0.08/4)^(4*2)

Simplifying the formula gives:

A = 5000(1 + 0.02)^8

Now you can calculate the balance using a calculator:

A ≈ 5000(1.02)^8

After evaluating this expression, you should find that the balance in the account 2 years after the last deposit is approximately $5,811.62.

Please note that if you're using a Texas Instruments calculator, you can utilize the exponential function (usually denoted by the "^" symbol or the "y^x" key) to compute the value inside the parentheses, and then multiply that result by 5000.

It is a sinking fund for 3 years (12 payments of 2% each). Get the value of the sinking fund after the three years of deposits and interest payments.

Then it becomes a plain old compound interest deposit. After two years multiply the sinking fund mount by 1.02^8