Question

after twelve monthly deposits of $400 at 12% compounded monthly, find the amount of an annuity.

please help me:(

Answer 1

DEP. = $400 per mo @ 12% = 1% MPR.=.01
1. BAL = 400* 1.01 = 404.
2. BAL = ( 404 + 400 )*1.01 = 812.04
3. BAL = (812.04 + 400)*1.01=1224.16
4. BAL= (1224.16+400)*1.01=1640.40
5. BAL= (1640.40+400)*1.01=2060.81
6. BAL= (2060.81+400)*1.01=2485.42
7. BAL= (2485.42+400)*1.01=2914.27
8. BAL= (2914.27+400)*1.01=3347.41
9. BAL= (3347.41+400)*1.01=3784.88
10.BAL= (3784.88+400)*1.01=4226.73
11.BAL= (4226.73+400)*1.01=4673.00
12.BAL= (4673.00+400)*1.01=5123.73

Couldn't find a single formula to
do the calculations, so I had to
calculate the BAL. at the end of
each month to get the BAL. at the
end of 12 months.

this,