document.write( "Question 1125488: Deposits of $250 per month are put into an investment plan that pays an APR of
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Algebra.Com's Answer #741819 by ikleyn(52786) $\"\"$ $\"About$

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document.write( "It is a classic Ordinary Annuity saving plan. The general formula is \r\n" );
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document.write( "    FV = ,    (1)\r\n" );
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document.write( "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; \r\n" );
document.write( "n is the number of deposits (= the number of years multiplied by 12, in this case).\r\n" );
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document.write( "Under the given conditions, P = 250;  r = 0.042/12;  n = 12*25 = 300.  So, according to the formula (1), you get at the end of the 25-th year\r\n" );
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document.write( "    FV =  =  = $132,315.51.\r\n" );
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document.write( "Note that you deposit only  12*25*$250 = $75,000.  The rest is what the account earns/accumulates in 25 years.\r\n" );
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\n" ); document.write( "\n" ); document.write( "On Ordinary Annuity saving plans, see the lessons\r
\n" ); document.write( "\n" ); document.write( " - Ordinary Annuity saving plans and geometric progressions\r
\n" ); document.write( "\n" ); document.write( " - Solved problems on Ordinary Annuity saving plans\r
\n" ); document.write( "\n" ); document.write( "in this site.\r
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