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?

Answer 1

amount = payment [(1+i)^n - 1]/i
where i = .06/12 = .005
n = 5(12) = 60
payment = 100