Question

In order to accumulate enough money for a down payment on a house, a couple deposits $407 per month into an account paying 6% compounded monthly. If payments are made at the end of each period, how much money will be in the account in 5 years?

Type the account in the account: $_______

Answer 1

Given,

Monthly deposit (M) = $407

Interest rate = 6%

Time = 5 years

Solution :-

Monthly Interest rate (8) = 6% = 0.50% of 0.oos No. of months (n) = 5 years x 12 = 60 months Now, Future Value - M [242)1] - the Mo? (2+0.005760 -1 ] - 4,40% [ 0.005 30 -1] _$81400 (1.34885015 - 1] - $81400 [0.34885015] - $28396.40 So, $28396.40 will be in the account in 5 years