in order to accumulate enough money for a down payment on a house, a couple deposits 249$ per month into an account paying 6%compounded monthly. If payments are made at the end of each period, how much money will be in the account in 7years?

Question

in order to accumulate enough money for a down payment on a​ house, a couple deposits  249$ per month into an account paying  6%compounded monthly. If payments are made at the end of each​ period, how much money will be in the account in  ​7years?

GPT 3.5 · Answer

To calculate the future value of the deposits, we can use the formula for the future value of an ordinary annuity:

FV = P * ((1 + r)^n - 1) / r

Where:
FV is the future value
P is the regular deposit amount
r is the interest rate per period
n is the number of periods

In this case, the deposit amount (P) is $249, the interest rate (r) is 6%/12 = 0.005, and the number of periods (n) is 7*12 = 84.

FV = 249 * ((1 + 0.005)^84 - 1) / 0.005
FV ≈ $24,653.71

Therefore, there will be approximately $24,653.71 in the account after 7 years.

in order to accumulate enough money for a down payment on a​ house, a couple deposits 249$ per month into an account paying 6%compounded monthly. If payments are made at the end of each​ period, how much money will be in the account in ​7years?

in order to accumulate enough money for a down payment on a house, a couple deposits 249$ per month into an account paying 6%compounded monthly. If payments are made at the end of each period, how much money will be in the account in 7years?