Question

In order to accumulate enough money for a down payment on a​ house, a couple deposits $608 per month into an account paying 6% compounded monthly. If payments are made at the end of each​ period, how much money will be in the account in 6 ​years? Type the amount in the account=$ (round to the nearest dollar)

Answer 1

Hi there
The formula of the future value of annuity ordinary is
Fv=pmt [(1+r/k)^(kn)-1)÷(r/k)]
Fv future value?
PMT monthly payment 608
R interest rate 0.06
K compounded monthly 12
N time 6years
So
Fv=608×(((1+0.06÷12)^(12×6)
−1)÷(0.06÷12))
=52,536.58...answer

Good luck!