Bank deposits

At the end of each quarter, Patti deposits $1,400 into an account that pays 10% interest compounded quarterly. How much will Patti have in the account in three years?

Note: Use tables, Excel, or a financial calculator round your final answer to the nearest whole dollar. (FV of $1, PV of $1, FVA of $1, and PVA of $1).

Correct answer:

x =  19313.77 USD

Step-by-step explanation:

a=1400 USD p=10%=10010=101=0.1  n=3 4=12 r=1+p/4=1+0.1/4=4041=1.025  x1=a=1400 x2=x1 r+a=1400 1.025+1400=2835 x3=x2 r+a=2835 1.025+1400=834447=4305.875 x4=x3 r+a=4305.875 1.025+14005813.5219  x5=x4 r+a=5813.5219 1.025+14007358.8599 x6=x5 r+a=7358.8599 1.025+14008942.8314 x7=x6 r+a=8942.8314 1.025+140010566.4022 x8=x7 r+a=10566.4022 1.025+140012230.5623  x9=x8 r+a=12230.5623 1.025+140013936.3263 x10=x9 r+a=13936.3263 1.025+140015684.7345 x11=x10 r+a=15684.7345 1.025+140017476.8528 x12=x11 r+a=17476.8528 1.025+140019313.7742  x=x12=19313.7742=19313.77 USD

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