Ask Question
23 May, 03:49

Joe wants to be able to purchase a dream car on January 1,2004, just after he graduates from college. Joe has had a part time job and started making deposits of $450 each month into an account that pays 21% compounded monthly beginning with the first deposit on February 1, 1999. The last deposit is to be made on January 1, 2004. Determine how much money he would have saved to buy the car.

+3
Answers (1)
  1. 23 May, 04:58
    0
    FV = $46,031.45

    Explanation:

    Giving the following information:

    Monthly deposit = $450

    Number of months = 59

    Interest rate = 0.21/12 = 0.0175

    To calculate the final value, we need to use the following formula:

    FV = {A*[ (1+i) ^n-1]}/i

    A = monthly deposit

    FV = {450*[ (1.0175^59) - 1]} / 0.0175 + 450

    FV = $46,031.45
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Joe wants to be able to purchase a dream car on January 1,2004, just after he graduates from college. Joe has had a part time job and ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers