Question 1068997:
In order to accumulate enough money for a down payment on a house, a couple deposits $ 567 per month into an account paying 3 % compounded monthly.
If payments are made at the end of each period, how much money will be in the account in 6 years?
(Round to the nearest dollar.)
Answer by addingup(3677)   (Show Source):
You can put this solution on YOUR website! Monthly deposits: $567 at the end of each month
Interest earned: 3% compounded 12 times per year
find balance after 6 years
If I got that right, then:
567{[(1+(0.03/12)]^(12*6)-1}/(0.03/12)
= 567(1.197-1)/0.0025
= 567(78.8) = $44,679.60
-------------------------------------------
Reference info you should know:
How much money did you put into this account? 567*72 = 40,824
How much interest did you earn over the 72 months? 44,679.6-40,824 = 3,855.60
:
John
|
|
|
