Question 1068959

When saving to buy a car, i placed the $2000 i had already in an account that earned 3.5% interest paid monthly. I also deposited $650 from my wages each month into the same account. What will be my final balance at the end of 2 years?
<pre>The $2,000 deposit represents the PRESENT VALUE, so the formula for the FUTURE VALUE of $1 MUST be used to calculate the FUTURE VALUE of $2,000 at the end of 2 years.
This will be $2,144.80.
The formula for the FUTURE VALUE of an ORDINARY ANNUITY MUST be used to calculate the FUTURE VALUE of 24 monthly payments of $650, at the end of 2 years.
This will be $16,134.62.
Add those 2 amounts to get: {{{highlight_green("$18,279.42")}}}