Homework Answers
Answer:
Monthly deposit = $200
Period = 3 years or 36 months
Annual interest rate = 11.00%
Monthly interest rate = 11.00% / 12
Monthly interest rate = 0.91667%
Accumulated sum = $200*1.0091667^35 + $200*1.0091667^34 + … +
$200*1.0091667 + $200
Accumulated sum = $200 * (1.0091667^36 - 1) / 0.0091667
Accumulated sum = $200 * 42.423149
Accumulated sum = $8,484.63
If the couple deposits $200 per month, then they will not have enough money to take vacation in 2023.
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