QuestionJames deposits \\ in 13 years. How much of the will James ultimately deposit in the account, and how much is interest earned? Round your answers to the nearest cent, if necessary.
Formulas
Studdy Solution
STEP 1
What is this asking?
How much money will James personally put into his child's college fund over 13 years, and how much extra money will the fund earn through interest by then?
Watch out!
A *quarter* is 1/4 of a year, so there are 4 quarters in a year.
Don't forget to multiply the number of years by 4 to get the total number of quarters!
STEP 2
1. Calculate the total number of deposits.
2. Calculate the total amount deposited.
3. Calculate the interest earned.
STEP 3
We know James deposits money *quarterly*, which means 4 times a year.
He does this for **13 years**.
To find the total number of deposits, we **multiply** the number of years by the number of quarters per year: .
So, James makes a whopping **52 deposits**!
STEP 4
James deposits each quarter.
We just figured out he makes **52** deposits.
To find the total amount he deposits, we **multiply** the deposit amount by the number of deposits: .
Wow, that's a lot of savings!
STEP 5
The goal is to have in the account after 13 years.
James deposits a total of .
The difference between these two amounts is the interest earned.
So, we **subtract** the total deposit from the final amount: .
That's some serious interest!
STEP 6
James will deposit into the account.
The interest earned will be .
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