A couple deposits 459 per month paying 6% compounded monthly how much would be in the account in 5 years
paym = 459
n = 5(12) = 60
i = .06/12 = .005
amount = 459 ( 1.005^60 - 1)/.005
= ...
you do the button-pushing.
To calculate the amount in the account after 5 years, we can use the compound interest formula:
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment/loan, including interest
P = the principal investment amount (the amount deposited each month), which is $459
r = the annual interest rate (in decimal form), which is 6% or 0.06
n = the number of times the interest is compounded per year, which is 12 (monthly compounding)
t = the number of years, which is 5
Now, substituting the given values into the formula:
A = 459(1 + 0.06/12)^(12*5)
Simplifying further:
A = 459(1 + 0.005)^(60)
A = 459(1.005)^(60)
Using a calculator or a spreadsheet, compute the value of (1.005)^(60) and multiply it by 459 to find the final amount in the account after 5 years.