document.write( "Question 1140924: charlie deposits $500 at the end of each month for the next five years in a credit union account paying 6% compounded monthly. What is the future value of the account at the end of five years? \n" ); document.write( "
Algebra.Com's Answer #761470 by ikleyn(52814)\"\" \"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 = \"P%2A%28%28%281%2Br%29%5En-1%29%2Fr%29\",    (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 = 500;  r = 0.06/12;  n = 12*5 = 60.  So, according to the formula (1), you get at the end of the 5-th year\r\n" );
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document.write( "    FV = \"500%2A%28%28%281%2B0.06%2F12%29%5E%2812%2A5%29-1%29%2F%28%280.06%2F12%29%29%29\" = \"500%2A%28%28%281%2B0.06%2F12%29%5E60-1%29%2F%28%280.06%2F12%29%29%29\" = $34,885.02.\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
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\n" ); document.write( "\n" ); document.write( "The lessons contain  EVERYTHING  you need to know about this subject,  in clear and compact form.\r
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\n" ); document.write( "\n" ); document.write( "When you learn from these lessons,  you will be able to do similar calculations in semi-automatic mode.\r
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