SOLUTION: I'm unable to solve this, please help and many thanks.
Lily plans to deposit $8,000 into a bank account at the beginning of next month and $200 each month into the same account at
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-> SOLUTION: I'm unable to solve this, please help and many thanks.
Lily plans to deposit $8,000 into a bank account at the beginning of next month and $200 each month into the same account at
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Question 1025874: I'm unable to solve this, please help and many thanks.
Lily plans to deposit $8,000 into a bank account at the beginning of next month and $200 each month into the same account at the end of that month and at the end of each subsequent month for the next 7 years. If her bank pays interest at the rate of 4%/year compounded monthly, how much will Lauren have in her account at the end of the 7 years? (Assume that she makes no withdrawals during the 7 year period.)
Where is the future value, is the amount of the equal periodic payments, is the annual interest rate (take the 100 out of the denominator if you are expressing your interest rate as a decimal), is the number of compounding periods per year, is the number of years, and is the present value (that is, the amount of the initial deposit). You have a bit of calculator work to do unless you have Excel or Numbers (on a Mac machine) in which case you can enter:
into a convenient spreadsheet cell and it will give you the answer you need.
John
My calculator said it, I believe it, that settles it
