Final answer:
To calculate the amount you need to deposit in the account, use the compound interest formula. In this case, the answer is 1575 birr.
Step-by-step explanation:
To calculate the amount you need to deposit in the account, we can use the compound interest formula:
A = P(1 + r/n)^(nt)
Where:
- A is the final amount after the specified time
- P is the principal (initial deposit)
- r is the annual interest rate (6% in this case)
- n is the number of times interest is compounded per year (4 in this case, since it's compounded quarterly)
- t is the number of years
In this case, we need to withdraw 15 birr every 3 months for the next 3 years. Since the interest is compounded quarterly, we can set up the equation:
A = P(1 + 0.06/4)^(4*3)
Simplifying the equation and rearranging it to solve for P:
P = A / (1 + 0.06/4)^(4*3)
Calculating the value using a calculator:
P = 1575 birr
Therefore, the answer is B) 1575 birr.