Question

suppose your parents are helping you invest money for the future. they open an account for you in January with an initial deposit of $200 that is compounded monthly at a rate of 3.6%. from now on, at the end of each month, you will deposit $200. how much money will be in your account at the end of the year?

Answer 1

X=year
y=$

y=200(1.003)^12x

3.6%->.036/12 (compounded monthly)

=0.003+1

y=200(1.003)^12(1) (1 year)

=$207.31999

BUT

200•12 ($200 deposited every month)

=$2400

2400+207.3199=

$2607.32