Suppose that Ian Greitzer deposits his $14,500 bonus in an account that earns an annual rate of 9%, compounded quarterly, and makes additional deposits of $400 at the end of each quarter for the next 22.5 years, until he retires. How much was deposited? Round your answer to the nearest cent.
A) $948,710.63
B) $25,622.85
C) $50,500.00
D) $313,872,654.67
E) $22,842.14

Question

Suppose that Ian Greitzer deposits his $14,500 bonus in an account that earns an annual rate of 9%, compounded quarterly, and makes additional deposits of $400 at the end of each quarter for the next 22.5 years, until he retires. How much was deposited? Round your answer to the nearest cent. ​
A) $948,710.63
B) $25,622.85
C) $50,500.00
D) $313,872,654.67
E) $22,842.14

Quizplus · Accepted Answer

The total amount deposited can be calculated by adding the initial deposit to the total of the quarterly deposits. The initial deposit is $14,500. For the quarterly deposits, Ian deposits $400 at the end of each quarter for 22.5 years. There are 4 quarters in a year, so the total number of deposits is 22.5 years * 4 quarters/year = 90 quarters. The total of the quarterly deposits is 90 quarters * $400/quarter = $36,000. Therefore, the total amount deposited is $14,500 (initial deposit) + $36,000 (quarterly deposits) = $50,500.

Suppose That Ian Greitzer Deposits His $14,500 Bonus in an Account