Homework Answers
Answer
We will work in months
Number of months=n=6*12=72
monthly interest rate =6/12=0.5%=r
A=monthly payment=500
FV=?
The formula is:
The future value is $43204
also, there is a table formula:
F=A*(F|A,r,n)
=500*(F|A,0.5%,72)
=500*86.409
=43204.5
=43205
If you did from the table in class then second is correct but it is not accurate as the first one is accurate to 14 digits so the answer is $43204
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