Ann Landers deposits $100 at the end of each month into her banksavings account.

Question

Ann Landers deposits $100 at the end of each month into her banksavings account. The bank pays 6% interest, it is compoundedand paid quarterly. No interest is paid on money not in theaccount for the full three-month period. How much will be inAnn’s account at the end of three years?

So i thought you would use this equation F=A(((1+i)^n)-1)/i

where i is interest n is period. but i don't know how toadd in the fact she doesn't get interest unless it has been in thefull 3 months. If any one could help that would be great.

Explanation / Answer

End of Jan: $100 End of Feb: $200 End of March: $300 Interest paid on 1st quarter: $0, she had no money thatstarted the quarter in the bank. Apr: $400 May: $500 June: $600 Interest paid on 2nd quarter: $18, which is 6% of $300, giving$618 July: $718 August: $818 September: $918 Interest paid on 3rd quarter: $37.08, or 6% of $618, giving$955.08 Oct: $1055.08 Nov: $1155.08 Dec: $1255.08 Interest paid on 4th quarter: 57.30, or 6% of $955.08, giving$1312.38
Total: $1312.38

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