Question 1121909
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Depends.


If you make the first deposit at the END of the first compounding period (Future Value of Annuity, FVA) then the formula is:


*[tex \LARGE \ \ \ \ \ \ \ \ \ \ FVA\ =\ P\[\frac{\(1\,+\,r\)^n\,-\,1}{r}\]]


Where *[tex \Large P] is the periodic payment, *[tex \Large r] is the interest rate per compounding period expressed as a decimal, and *[tex \Large n] is the number of compounding periods.


On the other hand, if your payment is made at the beginning of the first compounding period (Future Value of Annuity Due, FVAD), then the formula is:


*[tex \LARGE \ \ \ \ \ \ \ \ \ \ FVAD\ =\ \(1\,+\,r\)\(P\[\frac{\(1\,+\,r\)^n\,-\,1}{r}\]\)]


In your case, *[tex \Large P\ =\ 500], *[tex \Large r\ =\ \frac{0.02}{12}], and *[tex \Large n\ =\ 15\ \times\ 12].  It is up to you to do the arithmetic after you decide which formula to use.


Total of deposits for *[tex \LARGE FVA] is *[tex \LARGE Pn].  For *[tex \LARGE FVAD] it is *[tex \LARGE P(n\,+\,1)]


Total interest earned is either FVA minus Deposits or FVAD minus Deposits.


It is up to you to do the arithmetic after you decide which formula to use.
								
								
John
*[tex \LARGE e^{i\pi}\ +\ 1\ =\ 0]
My calculator said it, I believe it, that settles it
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