math!

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Heinz has been contributing $300 at the end of each month for the past 15 months to a sivings plan that earns 6% compounded monthly. What amount will he have 1 year from now if he continues the plan?

I'm not sure how to get the answer for this question which is:

$8649.11

  • math! -

    Sn = D[(1+i)^n-1)/i where
    Sn = the accumulated sum over n interest periods
    D = the periodic deposit
    i = the periodic interest paid = I%/100n
    n = the number of interest bearing periods

    The total interest beariing period is 15 + 12 months
    The monthly interest is 6/100(12) = .005
    The monthly deposit is $300

    Therefore,
    S(27)=300[(1.005)^27-1]/.005= $8,649.11

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