Question 1137171: Second year students association has decided to deposit ugx 500,000 every month will realize 2% per month for the period of five years .how much would the deposit grow at the end of five years
Answer by ikleyn(52781)   (Show Source):
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Second year students association has decided to deposit ugx 500,000  every month
will realize 2% per month for the period of five years .how much would the deposit grow at the end of five years
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Pay attention on how I edited your post to provide a unique sense.
It is a classic Ordinary Annuity saving plan. The general formula is
FV =  , (1)
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;
n is the number of deposits (= the number of years multiplied by 12, in this case).
Under the given conditions, P = 500000; r = 0.02; n = 12*5 = 60. So, according to the formula (1), at the end of the 5-th year
FV =  =  = 57,025,769.71. ANSWER
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On Ordinary Annuity saving plans, see the lessons
- Ordinary Annuity saving plans and geometric progressions
- Solved problems on Ordinary Annuity saving plans
in this site.
The lessons contain EVERYTHING you need to know about this subject, in clear and compact form.
When you learn from these lessons, you will be able to do similar calculations in semi-automatic mode.
-----------------
On Ordinary Annuity saving plans, see the lessons
- Ordinary Annuity saving plans and geometric progressions
- Solved problems on Ordinary Annuity saving plans
in this site.
The lessons contain EVERYTHING you need to know about this subject, in clear and compact form.
When you learn from these lessons, you will be able to do similar calculations in semi-automatic mode.
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