We have considered the case of regular deposits at the end of each month. If deposits are made at the beginning of each month, then the formula is a bit different. Balance after r deposits = Deposit x (1 + r) x (1 + r) - 1 Here, r is the monthly interest rate (as a decimal), and r is the number of deposits. The extra factor of 1 + r accounts for the interest earned on the deposit over the first month after it is made. Suppose you deposit $210 at the beginning of each month for 5 years. Take the APR to be 6.8%. What is the future value? In other words, what will your account balance be at the end of the period? Round your answer to the nearest cent. future balance:
We have considered the case of regular deposits at the end of each month. If deposits are made at the beginning of each month, then the formula is a bit different. Balance after r deposits = Deposit x (1 + r) x (1 + r) - 1 Here, r is the monthly interest rate (as a decimal), and r is the number of deposits. The extra factor of 1 + r accounts for the interest earned on the deposit over the first month after it is made. Suppose you deposit $210 at the beginning of each month for 5 years. Take the APR to be 6.8%. What is the future value? In other words, what will your account balance be at the end of the period? Round your answer to the nearest cent. future balance:
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Transcribed Image Text:We have considered the case of regular deposits at the end of each month. If deposits are made at the beginning of each month,
then the formula is a bit different.
Balance after t deposits = Deposit x (1 + r) x
(1+r) -1
Here, r is the monthly interest rate (as a decimal), and r is the number of deposits. The extra factor of 1 + r accounts for the
interest earned on the deposit over the first month after it is made. Suppose you deposit $210 at the beginning of each month for
5 years. Take the APR to be 6.8%. What is the future value? In other words, what will your account balance be at the end of
the period?
Round your answer to the nearest cent.
future balance:
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