f you deposit $1500 per month into an investment account that pays interest at a rate of 10.5% per year compounded quarterly, how much will be in your account at the end of 5 years? Assume no interperiod compounding.

 

The amount present in your account would be $

To calculate the future value of an investment with regular deposits into an account that pays compound interest, we use the **Future Value of an Annuity formula**. Here's the formula:

\[
FV = P \times \frac{(1 + \frac{r}{n})^{nt} - 1}{\frac{r}{n}}
\]

Where:
- $ FV $ is the future value of the investment
- $ P $ is the regular deposit amount ($1500 per month)
- $ r $ is the annual interest rate (10.5% or 0.105)
- $ n $ is the number of times the interest is compounded per year (quarterly, so $ n = 4 $)
- $ t $ is the total number of years (5 years)

Since the deposits are made monthly, we need to adjust for that by converting the monthly deposits into quarterly equivalents for proper compounding. 

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Here are some related questions you might find useful:
1. What happens if the interest is compounded monthly instead of quarterly?
2. How would the final amount change with a higher or lower interest rate?
3. What is the effect of adding more money to the deposit each month?
4. How can you calculate the interest earned separately from the principal?
5. What if the deposit term is longer than 5 years, say 10 or 15 years?

**Tip:** Always make sure you're clear about the compounding period when calculating interest—it significantly affects the outcome!

If you deposit $1500 per month into an investment account that pays interest at a rate of 10.5% per year compounded quarterly, how much will be in your account at the end of 5 years? Assume no interperiod compounding.

Discover how to calculate the future value of $1500 monthly deposits over 5 years with 10.5% annual interest compounded quarterly. This guide covers key concepts like compound interest and the future value of annuities, ideal for high school students in Grades 11-12.

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