Question

Deposits of ​$200 per month are put into an investment plan that pays an APR of 6.5​%. How much money will be in the plan after 18​years?

Answer 1

Answer:

The money will be $7455.97.

Step-by-step explanation:

Given : Deposits of ​$200 per month are put into an investment plan that pays an APR of 6.5​%.

To find : How much money will be in the plan after 18 ​years ?

Solution :

There is a deposit of $200 per month.

For 1 year the principle value is $P=200\times 12=2400$

The rate of interest is r=6.5%=0.065

The time is t=18 years

Apply compound interest formula,

$A=P(1+r)^t$

$A=2400(1+0.065)^{18}$

$A=2400(1.065)^{18}$

$A=2400\times 3.1066$

$A=7455.97$

Therefore, The money will be $7455.97.