Question

In March 2016, Yves decided to save for a new truck. He deposited $500 at the end of every three months in a bank account earning interest at 5% compounded quarterly. He made his first deposit on June 1, 2016. On June 1, 2018, Yves decided that he needed the money to go to college, so on September 1, 2018, rather than making deposits, he started withdrawing $300 at the end of each quarter until December 1, 2019. How much is left in his account after the last withdrawal if his bank account interest rate changed to 6.5% compounded quarterly on March 1, 2019?

Answer 1

Date of Deposit (A)	Amount of Deposit / (withdrawal) in $ (B)	Cumulative Balance as on the Date of deposit (C) = (B) + Previous qtr (E)	Interest Amount (D) = (C) * 1.25% [from March 1, 2019, int = 1.625% per qtr]	Cumulative Balance at the end of the Quarter (E)
1/6/2016	500	500	6.25	506.25
1/9/2016	500	1006.25	12.58	1018.83
1/12/2016	500	1518.83	18.99	1537.81
1/3/2017	500	2037.81	25.47	2063.29
1/6/2017	500	2563.29	32.04	2595.33
1/9/2017	500	3095.33	38.69	3134.02
1/12/2017	500	3634.02	45.43	3679.44
1/3/2018	500	4179.44	52.24	4231.69
1/6/2018	500	4731.69	59.15	4790.83
1/9/2018	-300	4490.83	56.14	4546.97
1/12/2018	-300	4246.97	53.09	4300.06
1/3/2019	-300	4000.06	65.00	4065.06
1/6/2019	-300	3765.06	61.18	3826.24
1/9/2019	-300	3526.24	57.30	3583.54
1/12/2019	-300	3283.54

Balance after Last withdrawal = $ 3283.54

note: Interest rate given is per annum, so initial interest rate = 1.25% per qtr and after subsequent change it will be 1.625% per qtr