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Bob has saved $515 each month for the last 3 years to make a down payment on a house. The account earned an interest of .26 percent per month. How much money is in Bob’s account?

Multiple Choice $18,565.10 $19,124.46 $18,540.00 $18,739.69 $19,408.97
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Answer #1

Monthly Payment (PMT) = $515

Interest Rate = 0.26 %

N = 3 Years * 12 Months

= 36 Months

The value at end of 3 years =

= PMT * FVIFA ( n, Rate)

= $ 515 * FVIFA( 36,0.26%)

= 515* 37.6873

= $ 19,408.97

Hence the correct answer is $19,408.97

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