document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1053994>Question 1053994</A>: <I><SPAN STYLE=\"word-break: break-all;\"> If Jackson deposited $400 at the end of each month in the saving account earing interest at the rate of 6%/year compounded monthly, how much will he have on deposite in his savings account at the end of 6 years, assuming that he makes no withdrawals during that period? Round your answers to two decimal places.<BR>\n" );
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document.write( "a. $34,538.54<BR>\n" );
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document.write( "b. $34,563.54<BR>\n" );
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document.write( "c. $34,541.61<BR>\n" );
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document.write( "d. $34,490.17<BR>\n" );
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document.write( "e. $34,463.31\r<BR>\n" );
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document.write( "Please Explain. Thank you </SPAN>\n" );
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document.write( "Answer:   <font color=red size=4>choice B)  $34,563.54</font>\r<BR>\n" );
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document.write( "Explanation:\r<BR>\n" );
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document.write( "We won't be using the classic compound interest formula.<BR>\n" );
document.write( "This is because Jackson makes periodic deposits rather than one single deposit.\r<BR>\n" );
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document.write( "Instead we use the future value of annuity formula.<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=FV+=+P%2A%28%281%2Bi%29%5En+-+1%29%2Fi ALIGN=MIDDLE  ALT=\"FV+=+P%2A%28%281%2Bi%29%5En+-+1%29%2Fi\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "where,<BR>\n" );
document.write( "FV = future value<BR>\n" );
document.write( "P = periodic payment or deposit<BR>\n" );
document.write( "i = interest rate per period (decimal form)<BR>\n" );
document.write( "n = number of periods\r<BR>\n" );
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document.write( "In Jackson's case:<BR>\n" );
document.write( "P = 400<BR>\n" );
document.write( "i = 0.06/12 = 0.005<BR>\n" );
document.write( "n = 12*6 = 72 months\r<BR>\n" );
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document.write( "So,<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=FV+=+P%2A%28%281%2Bi%29%5En+-+1%29%2Fi ALIGN=MIDDLE  ALT=\"FV+=+P%2A%28%281%2Bi%29%5En+-+1%29%2Fi\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=FV+=+400%2A%28%281%2B0.005%29%5E72+-+1%29%2F0.005 ALIGN=MIDDLE  ALT=\"FV+=+400%2A%28%281%2B0.005%29%5E72+-+1%29%2F0.005\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=FV+=+34563.5422793314 ALIGN=MIDDLE  ALT=\"FV+=+34563.5422793314\"   DISABLED_style= \"max-width:90%; height:auto;\" > approximately\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=FV+=+34563.54 ALIGN=MIDDLE  ALT=\"FV+=+34563.54\"   DISABLED_style= \"max-width:90%; height:auto;\" > rounding to the nearest penny\r<BR>\n" );
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document.write( "This points us to <font color=red>choice B</font> as the final answer.\r<BR>\n" );
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document.write( "Future value of annuity calculator<BR>\n" );
document.write( "<a  rel=nofollow HREF= \"https://www.omnicalculator.com/finance/annuity-future-value\">https://www.omnicalculator.com/finance/annuity-future-value</a><BR>\n" );
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