Deposits of
The future value is
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Final Answer: The future value of the deposits is approximately
Step 1 :The problem is asking for the future value of a series of equal deposits (an annuity) made at the end of each quarter for 7 years, with an interest rate of 7% compounded quarterly.
Step 2 :The formula for the future value of an annuity is:
Step 3 :In this case,
Step 4 :We can plug these values into the formula and calculate the future value.
Step 5 :
Step 6 :The future value of the annuity is approximately $2680.34. This is the total amount that the series of deposits will amount to after 7 years, with interest compounded quarterly at a rate of 7%.
Step 7 :Final Answer: The future value of the deposits is approximately