contestada

John got a part time weekend job at a local restaurant to save for a new car. He plans on depositing $120 per month for the next 4 years in a savings account with a rate of 4% per year compounded monthly. How much will he have saved toward his down payment at the end of the 4 year period?

Respuesta :

facundobuzzetti

Answer:

FV= $6,230.15

Explanation:

Giving the following information:

He plans on depositing $120 per month for the next 4 years in a savings account with a rate of 4% per year compounded monthly.

First, we need to determine the monthly rate:

Interest rate= 0.04/12= 0.0033

Now, we need to use the following formula to determine the final value:

FV= {A*[(1+i)^n-1]}/i

A= deposit= 120

n= 4*12= 48

i= 0.0033

FV= {120*[(1.0033^48)-1]} / 0.0033

FV= $6,230.15

Otras preguntas