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)

Question

Glenn Mayer

Mathematics

7 April, 04:05

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)

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Answers (1)

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Skyla Dunlap · 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!