Question

Is this answer correct?

Jeremy is in Grade 8. He has a paper route and wants to save for his college education. He determines that he has $100 per month to put into an account at 6%/a compounded monthly. How much will he have at the end of five years for his college education?

n = 12 x 5 = 60
R = 100
I = 0.06/12 = 0.005

Time
(Years) Amount of money at the beginning of the year Interest for the year New amount of money by the end of the year
1 n/a n/a 1200$
2 1200$ 1200[0.6][12] = 86.40 1286.40$
3 1286.40$ 1286.40[0.6][12] = 92.62 1379.02$
4 1379.02$ 1379.02[0.6][12] = 99.29 1478.31$
5 1478.31$ 1478.31[0.6][12] = 106.44 1584.75$

Answer 1

I had given you the formula to use in
http://www.jiskha.com/display.cgi?id=1295098022

I don't understand what you are doing in your post

I gave you
amount = payment [(1+i)^n - 1]/i , so ....
= 100 (1.005^60 - 1)/.005
= 6977.00