Posted by **COURTNEY** 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 -
**Reiny**, 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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