question 1 (3 points)\n\nyou invest $425.00 every month at the end of the compounding period into an account…

question 1 (3 points)\n\nyou invest $425.00 every month at the end of the compounding period into an account bearing 3.80% interest compounded monthly. how much will be in the account after 5 years?\n\nuse this formula:\n\n$fv = pmt \\times \\frac{(1+\\frac{r}{n})^{nt}-1}{\\frac{r}{n}}$\n\nenter the dollar amount rounded to the nearest cent.\n\nyour answer:\n\nanswer

question 1 (3 points)\n\nyou invest $425.00 every month at the end of the compounding period into an account bearing 3.80% interest compounded monthly. how much will be in the account after 5 years?\n\nuse this formula:\n\n$fv = pmt \\times \\frac{(1+\\frac{r}{n})^{nt}-1}{\\frac{r}{n}}$\n\nenter the dollar amount rounded to the nearest cent.\n\nyour answer:\n\nanswer

Answer

Explanation:

Step1: Identify given variables

$pmt = 425.00$, $r = 0.038$, $n = 12$, $t = 5$, $nt = 12 \times 5 = 60$.

Step2: Substitute values into the formula

$$FV = 425 \times \frac{(1 + \frac{0.038}{12})^{60} - 1}{\frac{0.038}{12}}$$

Step3: Calculate the periodic interest rate

$$i = \frac{0.038}{12} \approx 0.003166667$$

Step4: Calculate the numerator expression

$$(1 + 0.003166667)^{60} - 1 \approx 1.208855 - 1 = 0.208855$$

Step5: Solve for Future Value

$$FV = 425 \times \frac{0.208855}{0.003166667} \approx 28014.89$$

Answer:

$28,014.89