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erastova [34]
3 years ago
13

Hector's parents started saving money for his college education when Hector was six. If they save $400 per month at a credit uni

on account, paying 2.5% interest compounded daily, how much will Hector have for college expenses 12 years later?
Mathematics
1 answer:
s344n2d4d5 [400]3 years ago
4 0

Answer:

$539.94

Step-by-step explanation:

The formula for calculating future value:

FV = P (1 + r/m)^mn

FV = Future value  

P = Present value = $400

R = interest rate = 2.5/ 365

N = number of years = 12 x 365

$400 x ( 1 + 0.025/365)^4380 = $539.94

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 Topics 

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2 Answers

Gió

Mar 24, 2015

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Answer link

Alan P.

Mar 24, 2015

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