SOLUTION: tony is saving up to go travelling after graduation. How much will he have if he can put $75 at the end of every month, for the full four years he is in school, into his savings a
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-> SOLUTION: tony is saving up to go travelling after graduation. How much will he have if he can put $75 at the end of every month, for the full four years he is in school, into his savings a
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Question 1065747: tony is saving up to go travelling after graduation. How much will he have if he can put $75 at the end of every month, for the full four years he is in school, into his savings account which earns 1.8% interest, compounded monthly?
You can put this solution on YOUR website! A=75{1+(.018/12))^48-1}/(.018/12)
=$3729.87
The basic set up is the amount put in multiplied by
1+ interest rate/number of compundings per year) all raised to the number of compoundings per year*years.
Then subtract 1 and multiply by the amount put in each period (here $75).
Divide by interest rate/compoundings, the same number that was added to 1 at the beginning.
