If Gerry makes a deposit of $1,500 at the end of each quarter for five years, how much will he have at the end of the five years assuming a 12% annual return and quarterly compounding?

The Final Value is $40,305.56

Explanation:

Giving the following information:

Gerry deposits $1,500 at the end of each quarter for five years.

Interest rate = 12% quarterly compounding

To calculate the final value, we need to use the following formula:

FV = {A*[ (1+i) ^n-1]}/i

A = quarterly deposit = 1,500

i = 0.12/4 = 0.03

n = 5*4 = 20

FV = {1,500*[ (1.03^20) - 1]} / 0.03

FV = $40,305.56