document.write( "Question 1126544: Cardo invests $6,000 at the end of each month for 10 months. The annual interest rate Cardo gets is 12% compounded monthly. What is the final value of Cardo's investment at the end of the 10th month on this annuity? \n" ); document.write( "

Algebra.Com's Answer #742874 by ikleyn(52802) $\"\"$ $\"About$

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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 (10, in this case).\r\n" );
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document.write( "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\r\n" );
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document.write( "    FV =  =  = $62773.28.\r\n" );
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document.write( "Note that Cardo deposits only  10*$6000 = $60,000.  The rest is what the account earns/accumulates in 10 months.\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
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