deposit of 300 per month are put into an investment plan that pays apr of 6.1%.
ID: 341567 • Letter: D
Question
deposit of 300 per month are put into an investment plan that pays apr of 6.1%. how much money will be in the plan after 23 years Deposits of $300 per month are put into an investment plan that pays an APR of 6.1%. How much money will be in the plan after A total of s will have been paid into the account over 23 years and after the 23 years, the account will have a balance dof (Do not round until the final answer. Then round to two decimal places as needed) Enter your answer in the edit fields and then click Check Answer All parts showingExplanation / Answer
Formula for future value of annuity is:
FV = P x [(1+r) n - 1 /r]
FV = Future value of annuity
P = Periodic Payment = $ 300
r = Rate per period = 6.1 % p.a. or 0.061/12 = 0.00508333 p.m.
n = Numbers of periods = 23 x 12 = 276
FV = $ 300 x [(1 + 0.00508333)276 – 1/0.00508333]
= $ 300 x [(1.00508333)276 – 1/0.00508333]
= $ 300 x [(4.052954 – 1)/0.00508333]
= $ 300 x (3.052954/0.00508333)
= $ 300 x 600.58118 = $ 180174.35415 or $ 180,174.35
Total principal = $ 300 x 276 = $ 82,800
A total of $ 82,800 will have been paid in to the account over 23 years and after 23 years, the account will have a balance of $ 180,174.35
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.