Question

Deposits of ​$200 per month are put into an investment plan that pays an APR of 6.5​%. How much money will be in the plan after 18​years?

Answer 1

The money will be $7455.97.

Explanation:

Given : Deposits of ​$200 per month are put into an investment plan that pays an APR of 6.5​%.

To find : How much money will be in the plan after 18 ​years ?

Solution :

There is a deposit of $200 per month.

For 1 year the principle value is
`P=200* 12=2400`

The rate of interest is r=6.5%=0.065

The time is t=18 years

Apply compound interest formula,

`A=P(1+r)^t`

`A=2400(1+0.065)^(18)`

`A=2400(1.065)^(18)`

`A=2400* 3.1066`

`A=7455.97`

Therefore, The money will be $7455.97.