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Posted by on Wednesday, September 29, 2010 at 3:03pm.

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 ??

  • MATH FINANCE - , Wednesday, September 29, 2010 at 4:40pm

    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.

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