document.write( "Question 1156417: You deposit $100 each month into an account earning 4.9% interest.
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Algebra.Com's Answer #779119 by ikleyn(52798)\"\" \"About 
You can put this solution on YOUR website!
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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 the 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 = 100;  r = 0.049/12;  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 = \"100%2A%28%28%281%2B0.049%2F12%29%5E%2812%2A25%29-1%29%2F%28%280.049%2F12%29%29%29\" = \"100%2A%28%28%281%2B0.049%2F12%29%5E300-1%29%2F%28%280.049%2F12%29%29%29\" = $58,669.86.\r\n" );
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document.write( "Note that you deposit only  12*25*$100 = $30,000.  The rest is what the account earns/accumulates in 25 years.\r\n" );
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document.write( "The interest earned is the difference  58669.80 - 30000 = 28669.86 dollars.\r\n" );
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\n" ); document.write( "\n" ); document.write( "On Ordinary Annuity saving plans,  see the lessons\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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