SOLUTION: Your parents started depositing $90 each month, from the day of your birth (first deposit made when you were born). How much money do you have at age 18 with monthly compounding at

Question 1110732: Your parents started depositing $90 each month, from the day of your birth (first deposit made when you were born). How much money do you have at age 18 with monthly compounding at a rate of 10%?
Found 2 solutions by ikleyn, stanbon:
Answer by ikleyn(52803)   (Show Source): You can put this solution on YOUR website!
.

How much money do you have at age 18 = = 54501.11 dollars.

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For the theory and details see the lesson
    - Annuity Due saving plans and geometric progressions
in this site.

Also, you have this free of charge online textbook in ALGEBRA-II in this site
    - ALGEBRA-II - YOUR ONLINE TEXTBOOK.

The referred lesson is the part of this online textbook under the topic "Geometric progressions".

Save the link to this textbook together with its description

Free of charge online textbook in ALGEBRA-II
https://www.algebra.com/algebra/homework/complex/ALGEBRA-II-YOUR-ONLINE-TEXTBOOK.lesson

into your archive and use when it is needed.

==================
Calculations by @stanbon are incorrect.

It is easily seen by an unarmed eye from the first glance.

The reason (the cause) why they are incorrect is in using WRONG/IRRELEVANT formula.

Answer by stanbon(75887)   (Show Source): You can put this solution on YOUR website!
Your parents started depositing $90 each month, from the day of your birth (first deposit made when you were born). How much money do you have at age 18 with monthly compounding at a rate of 10%?
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FV = d((((1+i)^t-1)/i)*(1+i)
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FV = 90(((1+0.1/12)^(12*18)-1)(1+(0.1/12)
------
FV = 90(6.005-1)(1.00833)
FV = 454.20
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Cheers,
Stan H.
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