Question

You enter into an automatic savings plan with RBC where $750 is deducted from your paycheck at the end of each quarter starting on March 31, 2013 (first payment) to December 31, 2018 (last payment). If the account pays 8% (APR, monthly compounded), how much money is in the account on December 31, 2018 (right after the last contribution)?

Select one:

a. $14,164

b. $23,006

c. $14,259

d. $22,854

e. $18,000

f. $29,043

g. $12,531

h. $12,281

NOTE: Please show all the work, without using EXCEL (Step by step with equations) Thanks!

Answer 1

Date invested	Amt.	o/s for(mths.)	750*(1+(0.08/12)^no.of mths. o/s
31-Mar-13	750	69	1186.24
30-Jun	750	66	1162.83
30-Sep-13	750	63	1139.88
31-Dec-13	750	60	1117.38
"2014	750	57	1095.33
	750	54	1073.71
	750	51	1052.52
	750	48	1031.75
"2015	750	45	1011.39
	750	42	991.43
	750	39	971.86
	750	36	952.68
"2016	750	33	933.88
	750	30	915.44
	750	27	897.38
	750	24	879.67
"2017	750	21	862.30
	750	18	845.29
	750	15	828.60
	750	12	812.25
"2018	750	9	796.22
	750	6	780.50
	750	3	765.10
	750	0	750.00
			22853.64
			22854
ANSWER:
d. $ 22854