a couple deposits $783 per month into an account paying 3% compounded monthly. If payments are made at the end of each​ period, how much money will be in the account in 3 ​years?

Question

In order to accumulate enough money for a down payment on a​ house, a couple deposits $783 per month into an account paying 3% compounded monthly. If payments are made at the end of each​ period, how much money will be in the account in 3 ​years?

Type the amount in the​ account: ​$_______

​(Round to the nearest​ dollar.)

Answer 1

In order to accumulate enough money for a down payment on a​ house, a couple deposits $783 per month into an account paying 3% compounded monthly. If payments are made at the end of each​ period, how much money will be in the account in 3 ​years?

Type the amount in the​ account: ​$_______

​(Round to the nearest​ dollar.)

Compound interest for principal, this is a formula you should know for this section of math:

1. P = P_o (1 + (r/n))^n(t)

Future value of a series, but this is the formula you will use for this problem.:

1. PMT × {[(1 + r/n)^(nt) - 1] / (r/n)}
2. You will use this formula (because it is at the END of the month) to calculate the future value in the account where:
3. PMT = 783; r = .03, n = 12, t = 3
4. 783 ((1 + (.03/12))¹²⁽³⁾ -1)/(.03/12)
5. 29,530.54 = $29,531

There are a few formulas to memorize when dealing with Financial calculations. I hope this helps you!