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

Is this answer correct?

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$

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