document.write( "Question 1193605: Anjo wants to buy a quality television set within a year. He decides to
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Algebra.Com's Answer #825693 by ikleyn(52781)\"\" \"About 
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\n" ); document.write( "Anjo wants to buy a quality television set within a year. He decides to
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document.write( "It is about calculating future value of an 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); 1+r is the monthly growth coefficient; \r\n" );
document.write( "n is the number of deposits.\r\n" );
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document.write( "Under the given conditions, P = 2500;  r = 0.05/12;  n = 12.  So, according to the formula (1), Anjo gets at the end of the year\r\n" );
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document.write( "    FV = \"2500%2A%28%28%281%2B0.05%2F12%29%5E12-1%29%2F%28%280.05%2F12%29%29%29\" = P30697.14.\r\n" );
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document.write( "Note that Anjo deposits only  12*P2500 = P30,000.  The rest is what the account earns/accumulates in 12 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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\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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