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Calculate the balance in Mr. Warren's account at the end of the year, if he deposits $100 each at the ends of months 1 and 6, and $200 each at the ends of months 7 and 9. His bank pays 8% per year, compounded quarterly, and simple interest on the interperiod deposits.

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Answer: $1080 and $1082.43

Explanation: $100 deposit between months 1-6

$200 deposit between months 7-9

Interest Rate = 8%

FV = PV (1 + I)^n

1. Yearly

n = 1

i= 8

PV= $1000

FV= $1000(1 + 0.08)¹

FV= $1080

2. Compound quarterly

FV = PV (1 + I)^n

n = 12/3 = 4.

i = 8/4 = 2

FV= $1000 ( 1 + 0.02)⁴

FV= $1082.43

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