1 answer

I want to buy a car. I am saving $300 a month from my job and...

Question:

I want to buy a car. I am saving $300 a month from my job and putting it in the bank. If the bank is offering 4% interest per year, compounded monthly, how much will I have saved at the end of 5 years?


Answers

Given.

Monthly savings = $300

Interest rate = 4% or 0.04

Number of years = 5 years

Solution :-

Monthly interest rate (r) = 0.04/12 = 0.00333333333

Number of months (n) = 5 years x 12 = 60

Now,

Future value

= Monthly savings/r x [(1 + r)n - 1]

= $300/0.00333333333 x [(1 + 0.00333333333)60 - 1]

= $90000 x [(1.00333333333)60 - 1]

= $90000 x [1.2209965936987 - 1]

= $90000 x 0.2209965936987

= $19889.69

You will have saved $19889.69 at the end of 5 years.

.

Similar Solved Questions

2 answers
Two cards are drawn without replacement from an ordinary deck of 52 playing cards
Two cards are drawn without replacement from an ordinary deck of 52 playing cards. What is the probability that the second card is a number card, if the first card was a queen? The face cards are King, Queen, Jack. The number cards are ace – 10....
1 answer
Demonstrates the validity for all n belonging to N (natural numbers) a) divisible by 3 b)...
demonstrates the validity for all n belonging to N (natural numbers) a) divisible by 3 b) divisible by 9 c) divisible by 13 d) divisible by 64 Demostrar la validez de las siguientes afimaciones para todo n e N. a) 2n (-1)n+1 es divisible entre 3, b) 10 3 4n+1 +5 es divisible entre 9, c) 52n (1)...
1 answer
This Question: 1 pt 6 of 11 (0 complete) This Quiz: 17 pts possible Question Help...
This Question: 1 pt 6 of 11 (0 complete) This Quiz: 17 pts possible Question Help Assume that adults have IQ scores that are normally distributed with a mean of 101.2 and a standard deviation 16.4. Find the first quartile Q, which is the IQ score separating the bottom 25% from the top 75%. (Hint: Dr...
1 answer
8) Financial markets allow for all but which one of the following? A) allow most participants...
8) Financial markets allow for all but which one of the following? A) allow most participants to routinely earn high returns with low risk B) price securities according to their riskiness C) shift consumption through time from higher-income periods to lower D) channel funds from lenders of funds to ...
1 answer
For the monosaccharide shown on the right, answer the following questions: A-E please 1. For the...
For the monosaccharide shown on the right, answer the following questions: A-E please 1. For the monosaccharide shown on the right, answer the following questions: a) Which carbon is the anomeric carbon? b) Is the glycosidic hydroxyl group up or down? 0 c) Is the sugar drawn as the a- or the B-for...
1 answer
When can you "accept" the null hypothesis to be true? When you are writing the interpretation...
When can you "accept" the null hypothesis to be true? When you are writing the interpretation for a hypothesis test about the population mean and state that there is not enough evidence... Why or What do you use to make that determination? When you are writing the interpretation for a hypoth...
1 answer
Problem 8.3.1 Determine the Laplace transform of the following signals using Laplace Transform table and the...
Problem 8.3.1 Determine the Laplace transform of the following signals using Laplace Transform table and the time-shifting property. In other words, represent each signal using functions with known Laplace transforms, and then apply time-shifting property to find Laplace transform of the signals. th...
1 answer
A uniform sphere rolls down an incline. (a) What should be the incline angle theta if...
A uniform sphere rolls down an incline. (a) What should be the incline angle theta if the linear acceleration of the center of the sphere is to be 0.2g, where g is acceleration due to gravity? (b) For this angle, what would be the acceleration of a frictionless block sliding down the incline? A ...
1 answer
True or false:the graph of the equation 3x-5y=10 goes through (0,-2)
true or false:the graph of the equation 3x-5y=10 goes through (0,-2)...
1 answer
Which of the following cost reduction techniques focuses on nonvalue-added activities as a measure to reduce...
Which of the following cost reduction techniques focuses on nonvalue-added activities as a measure to reduce costs? a. Activity elimination b. Activity reduction c. Activity sharing d. Activity selection m#9 of 11 Wave Crest Cosmetics produces cosmetic products for 11 major buyers. One customer acco...
1 answer
A superannuation fund invests in a six-month maturity commercial paper issued by Aussie Finance, a finance...
A superannuation fund invests in a six-month maturity commercial paper issued by Aussie Finance, a finance company. Aussie Finance uses the funds to invest in a six-year maturity corporate bond issued by an oil company who plans to buy a new drill. Assume that all parties held instruments until matu...
1 answer
Done< АА assessment.education.wiley.com @ a WileyPLUS Assignments Question 1 of 4 > - / 1 View...
Done< АА assessment.education.wiley.com @ a WileyPLUS Assignments Question 1 of 4 > - / 1 View Policies Current Attempt in Progress Santana Corporation manufactures snowmobiles in its Blue Mountain, Wisconsin, plant. The following costs are budgeted for the first quarter's oper...
1 answer
Question 2 of 7 Andrew purchased an annuity that had an interest rate of 3.00% compounded...
Question 2 of 7 Andrew purchased an annuity that had an interest rate of 3.00% compounded semi-annually. It provided him with payments of $3,000 at the end of every month for 3 years. If the first withdrawal is to be made in 4 years and 1 month, how much did he pay for it? Round to the nearest cent ...
1 answer
Please make your answer clear A03: Quantitative and Qualitative Risk Assessment Analysis Quantitative Risk Assessment Single...
please make your answer clear A03: Quantitative and Qualitative Risk Assessment Analysis Quantitative Risk Assessment Single loss expectancy (SLE): Total loss expected from a single incident Annual rate of occurrence (ARO Number of times an incident is expected to occur in a year Annual loss expe...
1 answer
Chirko & Partners, a Quebec-based public accounting partnership, specializes in audit services. Its job-costing system has...
Chirko & Partners, a Quebec-based public accounting partnership, specializes in audit services. Its job-costing system has a single direct-cost category (professional labor) and a single indirect-cost pool (audit support, which contains all costs of the Audit Support Department). Audit support c...
1 answer
8 For four years, Marty Campbell Invested $4,000 each year in Harley-Davidson. The stock was selling...
8 For four years, Marty Campbell Invested $4,000 each year in Harley-Davidson. The stock was selling for $74 iIn 2014, $62 in 2015. $51 In 2016, and $59 In 2017 a. What is Marty's total investment in Harley-Davidson? points Total investment eBook Pont Reterences b. After four years, how many sha...
1 answer
Need help justifying. i know it is C but not why In a large, isolated population...
need help justifying. i know it is C but not why In a large, isolated population of an insect species, a specific gene locus has one dominant allele (A) and one recessive allele (a). The genotype frequencies of the gene were collected for ten generations, as shown in Table 1. Table 1. Genotypic f...