If payments are made at the end of each​ period, how much money will be in the account in 6 ​years?

Question

In order to accumulate enough money for a down payment on a​ house, a couple deposits $254 per month into an account paying 6% compounded monthly. If payments are made at the end of each​ period, how much money will be in the account in 6 ​years?

Type the amount in the​ account: ​$ _________

​(Round to the nearest​ dollar.)

Answer 1

FV = PMT((1 + i)^nt -1)/i

Given: PMT = $254, i = r/n = 0.06/12 = 0.005, t = 6 years

FV = 254((1 + 0.005)^12·6 - 1)/0.005 = $21947.85