\"You make the following deposits in a bank that earns 5% interest: 11/15/2017 $

Question

"You make the following deposits in a bank that earns 5% interest:
11/15/2017 $1,025
02/15/2018 $3,738
07/03/2018 $597
10/18/2018 $1,772
04/07/2019 $766
07/16/2019 $2,382
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

As per the convention to follow the deposits are:
Deposit made in 2017=1025
deposits made in 2018=3738+597+1772=6107
deposits made in 2019=766+2382=3148
At end of 2020 the deposit withdrawn and the amount will be:
=(1025*((1+5%)^3))+(6107*((1+5%)^2))+(3148*((1+5%)^1))
=11224.93

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