\"You make the following deposits in a bank that earns 5% interest: 11/13/2017 $

Question

"You make the following deposits in a bank that earns 5% interest:
11/13/2017 $1,024
02/10/2018 $4,199
09/21/2018 $535
10/16/2018 $1,666
03/06/2019 $799
07/26/2019 $2,062
You withdraw all the money at the end of 2020. How much money will you withdraw at the end of the year 2020? In your calculations, you should follow the convention that all deposits made during the year are lumped together at the end of the year. For example, any deposits made in January through December 30 can be considered as being deposited on December 31."

Explanation / Answer

Consider the given problem here there are “6 deposits” given in the question.

So, if the rate of interest is “5%”, then the total value of the deposit will be.

=> 1,024*(1.05)^3+(4,199+535+1,666)*(1.05)^2+(799+2,062)*1.05^1.

=> 1,185.408+7,056+3,004.05 = $11,245.458 = $11,245.

So, the person will withdraw “$11,245” in the end of 2020.

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