Ask questions and get helpful responses.

math

What will $7,246 deposited monthly accumulate to in 5 years earning 2.50% compounded monthly?

  1. 👍
  2. 👎
  3. 👁
  4. ℹ️
  5. 🚩
  1. 60 months at 0.025/12
    7246 * (1 + .025/12)^60

    1. 👍
    2. 👎
    3. ℹ️
    4. 🚩
  2. monthly deposits ... need to adjust the formula, as an annuity

    1. 👍
    2. 👎
    3. ℹ️
    4. 🚩
  3. Whoops, I did not notice that it was what I call a sinking fund. See:
    http://www.math.utep.edu/Faculty/cmmundy/Math%201320/Worksheets/Sinking%20Funds%20&%20Annuities.pdf
    here i = 0.025/12

    1. 👍
    2. 👎
    3. ℹ️
    4. 🚩
  4. You want FV
    Your PMT is 7246
    n = 60
    i = .025/12

    1. 👍
    2. 👎
    3. ℹ️
    4. 🚩

Respond to this Question

First Name

Your Response

Still need help? You can ask a new question.