Starting in 2013 you deide to put 17 sto am t eof each quart

Starting in 2013, you deide to put $17 sto am t eof each quarter (ie. each three months)into an account (that earns 1.92% interest compounded quarterly. No withdrawals are made during the two years. Create a statement that shows the information about the account during the first year-and-a-half (1/1/2013 to 7/1/2014). Note that you should have a balance of $1,062. 67 on 7/1/2014.

Solution

we are calculating compound interest quaterly so the interest also become one quarter.

1.92 / 4 = 0.48%

You started on 1-january-2013

on 1-april-2013 you put 175$

on 1-july-2013 with interest 175$ become = 175 * ( 1 + 0.48/100 ) = 175 * 1.0048 = 175.84$

and also put 175$ so total balance = 175.84 + 175 = 350.84$

on 1-october-2013 by interest = 350.84 * ( 1 + 0.48/100 ) = 350.84 * 1.0048 = 352.52$

and also put 175$ so total balance = 352.52 + 175 = 527.52$

on 1-january-2014 by interest = 527.52 * ( 1 + 0.48/100 ) = 527.52 * 1.0048 = 530.05$

and also put 175$ so total balance = 530.05 + 175 = 705.05$

on 1-april-2014 by interest = 705.05 * ( 1 + 0.48/100 ) = 705.05 * 1.0048 = 708.44$

and also put 175$ so total balance = 708.44 + 175 = 883.44$

on 1-july-2014 by interest = 883.44 * ( 1 + 0.48/100 ) = 883.44 * 1.0048 = 887.67$

and also put 175$ so total balance = 887.67 + 175 = 1062.67$

So the balance after the first year and a half is 1062.67$ on 1-july-2014