you invest $125.00 every month at the end of the compounding period into an account bearing 4.68% interest…

you invest $125.00 every month at the end of the compounding period into an account bearing 4.68% interest compounded monthly. how much will be in the account after 15 years? use this formula: $fv = pmt\times\frac{(1 + \frac{r}{n})^{nt}-1}{\frac{r}{n}}$. enter the dollar amount rounded to the nearest cent. your answer: answer

you invest $125.00 every month at the end of the compounding period into an account bearing 4.68% interest compounded monthly. how much will be in the account after 15 years? use this formula: $fv = pmt\times\frac{(1 + \frac{r}{n})^{nt}-1}{\frac{r}{n}}$. enter the dollar amount rounded to the nearest cent. your answer: answer

Answer

Explanation:

Step1: Identify the values

$pmt = 125$, $r=0.0468$, $n = 12$ (month - compounding), $t = 15$

Step2: Calculate $nt$

$nt=12\times15 = 180$

Step3: Calculate $\frac{r}{n}$

$\frac{r}{n}=\frac{0.0468}{12}=0.0039$

Step4: Calculate $(1 + \frac{r}{n})^{nt}$

$(1 + 0.0039)^{180}\approx1.9977$

Step5: Calculate $(1 + \frac{r}{n})^{nt}-1$

$1.9977-1 = 0.9977$

Step6: Calculate $\frac{(1+\frac{r}{n})^{nt}-1}{\frac{r}{n}}$

$\frac{0.9977}{0.0039}\approx255.8205$

Step7: Calculate $FV$

$FV=125\times255.8205 = 31977.5625\approx31977.56$

Answer:

$31977.56$