document.write( "Question 1120480: Jimmy opens a savings account with a $280 deposit at the beginning of the month. The account earns 4.3% annual interest compounded monthly. At the beginning of each subsequent month, Jimmy deposits an additional $280. How much will the account be worth at the end of 14 years? $ \n" ); document.write( "

Algebra.Com's Answer #736150 by MathTherapy(10552) $\"\"$ $\"About$

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Jimmy opens a savings account with a $280 deposit at the beginning of the month. The account earns 4.3% annual interest compounded monthly. At the beginning of each subsequent month, Jimmy deposits an additional $280. How much will the account be worth at the end of 14 years? $
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You need to apply the formula for future value of an ANNUITY DUE, or: , and
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document.write( "NOT the one for future value of an ORDINARY ANNUITY. This should yield: , as opposed to $64,371.60.
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document.write( "This is the difference between making payments, or depositing at the BEGINNING of a period, instead of at the end of the period.\r
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document.write( "For the above: 
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document.write( " is:  FUTURE VALUE of an ANNUITY DUE (Unknown, in this case)
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document.write( "PMT is:	    PERIODIC PAYMENT made ($280, in this case)  
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document.write( "\"i\" is:	    ANNUAL Interest rate (4.3%, or .043, in this case)
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document.write( "m is:	    number of ANNUAL COMPOUNDING periods (12, in this case)
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document.write( "t is:	    Time, in years it takes to reach Future Value (14 years, in this case) \n" );
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