SOLUTION: James and Terry open a savings account that has a 2.75% annual interest rate, compounded monthly. They deposit $500 in the account each month. How much will be in the account in 20

Question 1054709: James and Terry open a savings account that has a 2.75% annual interest rate, compounded monthly. They deposit $500 in the account each month. How much will be in the account in 20 years?
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
amount=d(1+(r/n)^nt-1)/(r/n)
d=amount deposited monthly, r=0.0275, n=12, 12 compoundings a year, and nt=240, number of compoundings in 20 years.
=500{[(1+(.0275)/12)^240]-1)}/(.0275/12)
do the 1+(.0275/12), then raise it to the 240th power, then subtract 1, then divide by (.0273/12) and multiply the result by 500
round at end.
$159,744.59

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