Question 1207343
.
Monthly payments of $ 600 were not paid for 19 months. If interest was 19.8% 
compounded monthly, how much was owed?
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<pre>
In this problem, the debt is numerically equal to the future value of the ordinary annuity 
with the monthly deposits of $600 and the interest of 19.8% per year compounded monthly.


To calculate the future value of an ordinary annuity, use the general formula 


    FV = {{{P*(((1+r)^n-1)/r)}}},    (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 (19 in this case).


Under the given conditions, P = 600;  r = 0.198/12;  n = 19.  
So, according to the formula (1), you get at the end of the 20-th year


    FV = {{{600*(((1+0.198/12)^19-1)/((0.198/12)))}}} = $13262.17.


<U>ANSWER</U>.  $13,262.17.
</pre>

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On Ordinary Annuity saving plans, &nbsp;see the lessons

&nbsp;&nbsp;&nbsp;&nbsp;- <A HREF=http://www.algebra.com/algebra/homework/Sequences-and-series/Ordinary-Annuity-saving-plans-and-geometric-progressions.lesson>Ordinary Annuity saving plans and geometric progressions</A>

&nbsp;&nbsp;&nbsp;&nbsp;- <A HREF=https://www.algebra.com/algebra/homework/Sequences-and-series/Solved-problem-on-Ordinary-Annuity-saving-plans.lesson>Solved problems on Ordinary Annuity saving plans</A>

in this site.


The lessons contain &nbsp;EVERYTHING &nbsp;you need to know about this subject, &nbsp;in clear and compact form.


When you learn from these lessons, &nbsp;you will be able to do similar calculations in semi-automatic mode.



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To make such complicated calculations as they are in this problem,
you should have/use an appropriate calculator for such long formulas.


Ideal choice is MS Excel, if you have it in your computer.


Then you write a formula in a text editor, copy-paste it 
into an Excel work-sheet cell and click "enter" - the result is ready 
in the next second.


If you have no MS Excel in your computer, you may find similar 
free of charge calculators in the Internet. One such calculator is


www.desmos.com/calculator


It allows you to do the same thing: you write a formula in a text editor, 
copy-paste it into this calculator and click "enter" - the result is ready 
in the next second.