If Jerry contributes at the beginning of the month and withdraws at the end of the month, the final contribution earns 1 month's interest. The one before that earns 2 months' interest, so has a value of (1+0.017/12) times that of the last payment. In short, the sum is that of a geometric sequence with first term
a₁ = 300*(1+0.017/12)
and common ratio
r = 1+0.017/12
We assume Jerry contributes each month for 15 years, so a total of 180 payments. The sum is given by the formula for the sum of a geometric sequence.
Filling in your numbers, this is
If Jerry's contributions and withdrawal are at the end of the month, this balance is reduced by 1 month's interest, so is $61,460.
_____
We suppose the expected choice is $61,960. This supposition comes from the fact that a handwritten 4 is often confused with a handwritten 9. The usual simple calculation of future value uses end-of-the-month contributions by default. (a₁ = 300)
703 rounded to the nearest hundred is 700
Answer:
The future value of loan amount after 4 months is $ 34,695.136
Step-by-step explanation:
Given as :
The loan principal = $ 34300
The rate of interest applied = 3.5 %
The time period = 4 months = year
Let The amount after 4 months = $ A
<u>From compounded method</u>
Amount = Principal ×
or, Amount = 34300 ×
or, Amount = 34300 ×
or, Amount = 34300 × 1.01152
∴ Amount = $ 34,695.136
Hence The future value of loan amount after 4 months is $ 34,695.136 Answer