Monday

September 22, 2014

September 22, 2014

Posted by **Alicia** on Sunday, January 16, 2011 at 12:44pm.

Jeremy is in Grade 8. He has a paper route and wants to save for his college education. He determines that he has $100 per month to put into an account at 6%/a compounded monthly. How much will he have at the end of five years for his college education?

n = 12 x 5 = 60

R = 100

I = 0.06/12 = 0.005

Time

(Years) Amount of money at the beginning of the year Interest for the year New amount of money by the end of the year

1 n/a n/a 1200$

2 1200$ 1200[0.6][12] = 86.40 1286.40$

3 1286.40$ 1286.40[0.6][12] = 92.62 1379.02$

4 1379.02$ 1379.02[0.6][12] = 99.29 1478.31$

5 1478.31$ 1478.31[0.6][12] = 106.44 1584.75$

- MathHH -
**Reiny**, Sunday, January 16, 2011 at 4:15pmI had given you the formula to use in

http://www.jiskha.com/display.cgi?id=1295098022

I don't understand what you are doing in your post

I gave you

amount = payment [(1+i)^n - 1]/i , so ....

= 100 (1.005^60 - 1)/.005

= 6977.00

**Answer this Question**

**Related Questions**

Math - Jeremy is in Grade 8. He has a paper route and wants to save for his ...

Math - Jeremy is in Grade 8. He has a paper route and wants to save for his ...

english - Education in financial planning teaches (simple present tense) me how ...

Grade 12 English - College Assignment - I have to mention the route I will take ...

math - Eric deposted $32,000 in a savings account to save for his children's ...

ASAP MATH! - A paper carrier rides a bicycle to deliver newspapers on his route....

7th grade math - Jared wants to save $100 to buy a tennis racket. He saces $8 ...

math - Jorge needs 1.5 hours to complete his paper route. if Jorge's average ...

math / linear programming - Two factories manufacture 3 different grades of ...

math grade 10 mathhh - A map shows a main gas pipeline running straight from A(...