Question

Can someone help me with this question please?

Kelly Malone plans to have $42 withheld from her monthly paycheck and deposited in a savings account that earns 12% annually, compounded monthly. If Malone continues with her plan for one and one-half years, how much will be accumulated in the account on the date of the last deposit? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Answer is complete but not entirely correct. Periodic Cash Flow Table Factor Total Accumulation 472.71 = $ 42 11.2551 Table Values are Based on: 1%

Answer 1

Periodic payment-P	=	$42
Rate per period-r	=	i/1200 = 12/1200
	=	0.01
No of months-n	=	1.5*12
	=	18 months
FV of Annuity	=	P((1+r)^n-1)/r
	=	42((1.01)^18-1)/.01
Accumulated amount in the account on the last date of deposit	=	$          823.8194

The table factor is ((1+r)^n-1)/r = 19.6148