Question

Mantis saving to buy a new motorcycle. If he deposits $40 at the end of each month in an account that pays an annual interest rate of 4.5%, how much will he have in 15 months? Assume that mpounding is being done monthly Round the final answer to the nearest sont as needed. Round all intermediate values to eight decimal places as needed)

Answer 1

future value is $693.00

Explanation:

Given data

principal = $40

rate = 4.5% = 4.5/12 = 0.00375 monthly

time = 15 months

to find out

future value

solution

we know here future value formula i.e

future value = principal
`( 1+rate)^(t)` /rate .................1

now put rate time and principal in equation 1 and we get future value

future value = principal
`( 1+rate)^(t)` /rate

future value = 45
`( 1+0.00375)^(15)` /0.00375

future value = 693.009946