Solve
Step
i = 0.06 ÷ 12 = 0.005
You decide to save for your child's college education by depositing $200 at the end of each month into a savings account paying 6% interest compounded monthly. How much money will be in the account after 18 years?
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Solve |
Step |
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i = 0.06 ÷ 12 = 0.005 |
k = 12, r = 0.06, Monthly means 12 times a year |
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P is payment = 200, n = 18 years |
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Find the Future Value |
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| You would have $77,470.64 after 18 years. (before taxes) | |
| Enter 200 ×( (1 + 0.06 ÷ 12 ) xy ( 12 × 18 ) - 1) ÷ .005 [enter or =] in your calculator | |
| Hint: don't round until you are completely finished with your calculations. | |