Mathematics
bpatrice1331
29

$765.13 is deposited at the end of each month for 2 years in an account paying 12% interest compounded monthly. Find the amount of the account. Round your answer to the nearest cent.

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(1) Answers
IndyGiselle

The amount of the account after two years can be calculated using the formula: F=A((1+i)^n-1)/i where  F=future value to be calculated A=amount added per period = 765.13 n=number of periods=2*12=24 months i=interest per period (month) = 0.12/12=0.01 Therefore  F=765.13(1.01^24-1)/0.01 =20638.21

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