SOLUTION: Jerry calculates that if he makes a deposit of $5 each month at an APR of 4.8%, then at the end of two years he'll have $100. Benny says that the correct amount is $135. what was t

Question 1139861: Jerry calculates that if he makes a deposit of $5 each month at an APR of 4.8%, then at the end of two years he'll have $100. Benny says that the correct amount is $135. what was the total amount deposited ( ignoring interest earned)?
The total amount deposited was ?
Answer by jim_thompson5910(35256) (Show Source): You can put this solution on YOUR website!

Answer: 120 dollars

Explanation: Jerry is depositing $5 per month for 24 months total, which leads to 5*24 = 120 dollars in total deposits. This is ignoring any interest earned. We only care about the total amount Jerry contributed and no other outside source contributions are considered (you can think of the interest earned as Jerry's friends chipping in to help grow the pot of money).

Extra side info: If you wanted to include interest, then it gets a bit more complicated and you would have to use the future value of annuity formula. However, that's for another problem or lesson.

RELATED QUESTIONS
If Jackson deposits $130 at the end of each month in a savings account earning interest... (answered by jorel1380)

If Jackson deposits $100 at the end of each month in a savings account earning interest... (answered by oscargut)

If you deposit $800 per month into a simple annuity, with APR 4.2%. how much do you have... (answered by jorel1380,MathTherapy,akch2002)

3. You are saving to buy a car, and you deposit $250 at the end of each month for two... (answered by Theo)

You are saving to buy a car, and you deposit $150 at the end of each month for two years... (answered by ikleyn)

Your friend Bill has a daughter who just turned 8 years old. She is planning on starting (answered by Theo)

financial planning joe plans to deposit $200 at the end of each month into a bank account (answered by CPhill)

Tebongo opened his savings account with a single deposit of R5000 at the beginning of... (answered by Theo)

Peter makes equal monthly deposits at the end of each month for the next four years to... (answered by Theo)