You deposit $400 each month in a savings plan. The first monthly deposit occurs in month...
You deposit $400 each month in a savings plan. The first monthly deposit occurs in month 2 and the final occurs in month 11. What is the accumulated value of your savings in 12 months time. Interest rate 12% p.a. compounded monthly.
a. 4,816.48
b. 3,823.74
c. 4,345.30
d. 4,281.09
e. 5,216.48
Homework Answers
Accumulated amount in 12
months=400/(1+12%/12)^2*(1-1/(1+12%/12)^10)/(1-1/(1+12%/12))*(1+12%/12)^12
=4281.09
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