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Ralph has made deposits of $360 at the end of every quarter for nine years. if interest is 5% compounded annually, how much will ralph have accumulated six years after the last deposit?

User AlecTMH
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1 Answer

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Final answer:

To calculate the total amount Ralph will have accumulated six years after the last deposit, we can use the formula for compound interest. Ralph has been making deposits of $360 at the end of every quarter for a total of 9 years, with an interest rate of 5% compounded annually. The total amount accumulated after 6 years will be approximately $16,829.34.

Step-by-step explanation:

To calculate the amount Ralph will have accumulated six years after the last deposit, we can use the formula for compound interest:

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

Where:

A is the total amount of money accumulated after time t

P is the principal amount (initial deposit)

r is the annual interest rate (as a decimal)

n is the number of times interest is compounded per year

t is the number of years

In this case, Ralph has been making deposits of $360 at the end of every quarter for a total of 9 years. The interest rate is 5% compounded annually.

First, let's calculate the number of quarters over the 9-year period:

Number of quarters = 9 years * 4 quarters per year = 36 quarters

Next, let's calculate the principal amount:

Principal amount = $360 * 36 = $12,960

Finally, we can calculate the total amount accumulated after 6 years:

Total amount = $12,960 * (1 + 0.05)^6 = $16,829.34

Therefore, Ralph will have accumulated approximately $16,829.34 six years after the last deposit.

User Ricky Bobby
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