.
It is a classic Ordinary Annuity saving plan. The general formula is
FV = , (1)
where FV is the future value of the account; P is your monthly payment (deposit); r is the monthly percentage yield presented as a decimal;
n is the number of deposits (10, in this case).
Under the given conditions, P = 6000; r = 0.12/12; n = 10. So, according to the formula (1), you get at the end of the 10-th month
FV = = = $62773.28.
Note that Cardo deposits only 10*$6000 = $60,000. The rest is what the account earns/accumulates in 10 months.
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On Ordinary Annuity saving plans, see the lessons
- Ordinary Annuity saving plans and geometric progressions
- Solved problems on Ordinary Annuity saving plans
in this site.