Question 542769
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You want the future value of an ordinary annuity:


*[tex \LARGE \ \ \ \ \ \ \ \ \ \ FV_{oa}\ =\ PMT\left\[\frac{\left(1\ +\ i\right)^n\ -\ 1}{i}\right\]]


Where


*[tex \LARGE \ \ \ \ \ \ \ \ \ \ PMT] is the regular payment amount


*[tex \LARGE \ \ \ \ \ \ \ \ \ \ i] is the interest <b><i>per period</i></b> as a decimal


*[tex \LARGE \ \ \ \ \ \ \ \ \ \ n] is the number of periods.


3% per annum divided by 12 months is 0.06 divided by 12 equals 0.0025 per period.


11 years times 12 months per year is 132 periods.


So:


*[tex \LARGE \ \ \ \ \ \ \ \ \ \ FV_{oa}\ =\ 300\left\[\frac{\left(1.0025\right)^{132}\ -\ 1}{0.0025}\right\]]


Get out your calculator and get to work.


Note that this is only valid if you make the $300.00 deposit at the <b><i>end</i></b> of each month.


If you make the deposits at the beginning of each month, then you want the Future Value of an Annuity Due,


*[tex \LARGE \ \ \ \ \ \ \ \ \ \ FV_{ad}\ =\ =\ FV_{oa}\left(1\ +\ i)]


So for beginning of the month deposits you would just multiply your previous result by *[tex \Large 1.0025]


John
*[tex \LARGE e^{i\pi} + 1 = 0]
My calculator said it, I believe it, that settles it
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