posted by COURTNEY on .
Mr. Smith wants to save for his son’s college education.
If he deposits $300 each month at 12% compounded
monthly, how much (to the nearest penny) will he have in the
account after 8 years?
Answer = $
HOW DO I SOLVE THIS ??
You should know the "amount of an annuity" formula
amount = payment[ (1+i)^n - 1]/i
where i is the monthly rate, n is the number of payments
for your case
payment = 300
i = .12/12 = .01
n = 8(12) = 96
you do the button-pushing, let me know what you got.