webwork / csm m125westmoreland / wbwk 07 /3 wbwk 07: Problem 3 Previous Problem

Question

webwork / csm m125westmoreland / wbwk 07 /3 wbwk 07: Problem 3 Previous Problem ListNext (3 points) Monthly deposits of 835 dollars will be placed into an account paying 7.1 percent per year, compounded monthly, starting on June 1, 2023. How much will be in the account immediately after the deposit on June 1, 2030? Answer dollars. [Hint: First convert the percent interest rate per year (7.1 percent) to interest rate per period. Then apply the future value formula.] You have attempted this problem 2 times. Your overall recorded score is 0%. You have unlimited attempts remaining.

Explanation / Answer

Q 9. We need to calculate future value of monthly payment of $ 835 in 7 years Future value of annuity= quaterly deposit *(((1+Monthly rate)^no. of quarters-1)/monthly rate) =835*((1+7.1%/12)^(12*7)-1)/(7.1%/12) = $ 90,515.45

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