How much will deposits of $240 made at the end of each 6 months amount to after 7 years if interest is 7% compounded quarterly?
The deposits will amount to $ ?
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

Answer

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Answer

Final Answer: The deposits will amount to $\boxed{11109.75}$

Steps

Step 1 ：Translate the given problem into the formula for the future value of an ordinary annuity: $FV = P * [(1 + r/n)^(nt) - 1] / (r/n)$

Step 2 ：Identify the values given in the problem: $P = 240$, $r = 0.07$, $n = 2$, and $t = 14$

Step 3 ：Substitute the given values into the formula: $FV = 240 * [(1 + 0.07/2)^(2*14) - 1] / (0.07/2)$

Step 4 ：Solve the equation to find the future value of the deposits

Step 5 ：Round the final answer to the nearest cent to get the final amount of the deposits

Step 6 ：Final Answer: The deposits will amount to $\boxed{11109.75}$