In order to accumulate enough money for a down payment on a house, a couple deposits $608 per month into an account paying 6% c

Question

maks197457 [2]

2 years ago

5

In order to accumulate enough money for a down payment on a house, a couple deposits $608 per month into an account paying 6% c

ompounded 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)

Mathematics

1 answer:

____ [38] · Answer 1 · 2022-05-28T19:45:37+03:00

____ [38]2 years ago

8 0

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!

In order to accumulate enough money for a down payment on a​ house, a couple deposits $608 per month into an account paying 6% c

In order to accumulate enough money for a down payment on a house, a couple deposits $608 per month into an account paying 6% c