Question

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On the first day of the month an investor places $300 into a savings account. The investor places $200 into the savings account on the last day of the same month. The investor continues to place $200 into the savings account on the last day of each subsequent month for a period of three years. The savings account offers 6% interest per year, compounded monthly. After three years, how much money will be in the savings account?

Answer 1

Accumulated balance at the end of third year would be $8,026.23. Please refer below calculation without using formula.

NA Interest Rate Investment at the Per Month Interest Additional Accumulated beginning of the Month (6%/12) Amount Amount Invested Balance 1 300.00 0.50% 1.50 200.00 501.50 2 501.50 0.50% 2.51 200.00 704.01 3 704.01 0.50% 3.52 200.00 907.53 4 907.53 0.50% 4.54 200.00 1,112.07 5 1,112.07 0.50% 5.56 200.00 1,317.63 6 1,317.63 0.50% 6.59 200.00 1,524.21 7 1,524.21 0.50% 7.62 200.00 1,731.83 8 1,731.83 0.50% 8.66 200.00 1,940.49 9 1,940.49 0.50% 9.70 200.00 2,150.20 10 2,150.20 0.50% 10.75 200.00 2,360.95 11 2,360.95 0.50% 11.80 200.00 2,572.75 12 2,572.75 0.50% 12.86 200.00 2,785.62

13 14 T 13.93 15.00 16.07 17.15 200.00 200.00 200.00 200.00 15 16 17 18.24 200.00 18 200.00 2,785.62 2,999.54 3,214.54 3,430.6 3,647.77 3,866.01 4,085.34 4,305.76 4,527.29 4,749.93 4,973.68 5,198.55 0.50%| 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%| 0.50%| 0.50% 0.50%| 0.50% 0.50%| 2,999.54 3,214.54 3,430.61 3,647.77 3,866.0 4,085.34 4,305.76 4,527.29 4,749.93 4,973.68 5,19୫.55 5,424.54 19 19.33 20.43 21.53 22.64 23.75 20 2 200.00 200.00 200.00 200.00 200.00 200.00 22 23 24.87 24 25.୨୨

25 26 27.12 28.26 27 29.40 30.55 28 29 30 31 5.424.54 5,651.66 5,879.92 6,109.32 6,339.87 6.571.57 6,804.42 7,038.45 7/273.64. 7,510.01 7,747.56 7986.29 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 31.70 32.86 34.02 35.19 36.37 37.55 38.4 39.93 5,651.66 5,879.92 6.109.32 6,339.87 6.571.57 6,804.42 7,038.45 7/273.64 7.510.01 7,747.56 7,986.29 8,026.23 32 33 34 35 36

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