Starting three months after her grandson Robin's birth, Mrs. Devine made deposits of
Robin will receive
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Finally, we round the result to the nearest cent to get the final answer: Robin will receive
Step 1 :Let's denote the amount of each deposit as
Step 2 :The annual interest rate is
Step 3 :The interest is compounded quarterly, so the number of times interest is compounded per year is
Step 4 :Mrs. Devine made deposits for 18 years, so the total number of deposits is
Step 5 :We can calculate the future value of the deposits using the formula for the future value of a series of equal deposits (or an annuity):
Step 6 :Three months after the last deposit, Robin starts to withdraw money every three months for two years, so the total number of withdrawals is
Step 7 :We can calculate the amount of each withdrawal by dividing the future value of the deposits by the total number of withdrawals:
Step 8 :By substituting the given values into the formulas, we can calculate the amount of each withdrawal
Step 9 :Finally, we round the result to the nearest cent to get the final answer: Robin will receive