Question

Conner opens a new savings account and decides to deposits $100 on the first day of each month into the account which earns 1.0% interest each month. How much is in the account to the nearest dollar, right after Conner makes his last deposit on the first day of the sixth year (the 61st month)?

Answer 1

like 7,523.38

i think lol

source : https://www.bankrate.com/calculators/savings/simple-savings-calculator.aspx

Answer 2

Given:

monthly deposit, A=100

rate of interest, i = 1% per month = 0.01 per period

compounding period = 1 month (assumed).

Total payments :

n=60 payments of $100 at the end of the month (beginning of the next month) +

1 payment at the beginning of the first month.

Future value after 60 months

= amount due to 60 monthly payments at end of month + value of first payment

= A((1+i)^n-1)/i  + A*(1+i)^60

=100(1.01^60-1) + 100(1.01^60)

= 8166.967 + 181.670

= 8348.64 (to the nearest cent)