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30 May, 08:00

In order to accumulate enough money for a down payment on a house, a couple deposits $608 per month into an account paying 6% compounded monthly. If payments are made at the end of each period, how much money will be in the account in 6 years? Type the amount in the account=$ (round to the nearest dollar)

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  1. 30 May, 11:33
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    Hi there

    The formula of the future value of annuity ordinary is

    Fv=pmt [ (1+r/k) ^ (kn) - 1) : (r/k) ]

    Fv future value?

    PMT monthly payment 608

    R interest rate 0.06

    K compounded monthly 12

    N time 6years

    So

    Fv=608 * (((1+0.06:12) ^ (12*6)

    -1) : (0.06:12))

    =52,536.58 ... answer

    Good luck!
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