Jane deposits $1,800 in an account at the beginning of each 3-month period for 10 years. The account pays interest at the rate of 12%, compounded quarterly, how much will she have in after 10 years?

Question

Solve the problem. (Round your answer to the nearest cent.) 

Answer 1

The savings account formula to use, for compound interest with periodic payments is:

A = P(1+r/n)^nt + C[((1+r/n)^nt-1)/(r/n)]

For this problem P=C=1800.

n=4

r=12%=0.12

t=10

Just plug in the values to solve.