document.write( "Question 1149615: dusty hill deposit 250 at the end of every month into an account that earn 7.8% interest, compounded monthly. how mush will he save up after 10 years \n" ); document.write( "

Algebra.Com's Answer #770963 by ikleyn(52816) $\"\"$ $\"About$

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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 the monthly payment (deposit) value; r is the monthly percentage yield \r\n" );
document.write( "presented as a decimal; 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 = 0.078/12;  n = 12*10 = 120.  So, according to the formula (1), you get \r\n" );
document.write( "at the end of the 10-th year\r\n" );
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document.write( "    FV =  =  = 45229.73     ANSWER\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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\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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