Jimmy opens a savings account with a $210 deposit at the beginning of the month. The account earns 5% annual interest compounded monthly. At the beginning of each subsequent month, Jimmy deposits an additional $210. How much will the account be worth at the end of 12 years?
oop i meant interest
vectors? All these fancy names these days to impress parents, I guess.
Isn't there a calculator which does this for you? http://financeformulas.net/Future_Value_of_Annuity.html
I tried these interest equations as well as many others for continuous deposits, but nothing works.
so, which functions did you use? Show some work ...
To find the amount in the savings account at the end of 12 years, we need to use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final amount in the account
P = the initial deposit
r = annual interest rate (as a decimal)
n = number of times the interest is compounded per year
t = number of years
In this case, the initial deposit is $210, the annual interest rate is 5% (or 0.05 as a decimal), and the interest is compounded monthly (n = 12). The total time is 12 years (t = 12).
Let's calculate:
A = 210(1 + 0.05/12)^(12*12)
A = 210(1 + 0.004167)^(144)
A = 210(1.004167)^(144)
Now we can use a calculator to find the final amount:
A ≈ $4644.25
Therefore, the account will be worth approximately $4644.25 at the end of 12 years.