Question
Asked Oct 11, 2019
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Lauren plans to deposit $6000 into a bank account at the beginning of next month and $250/month into the same account at the end of that month and at the end of each subsequent month for the next 4 years. If her bank pays interest at a rate of 5%/year compounded monthly, how much will Lauren have in her account at the end of 4 years? (Assume she makes no withdrawals during the 4-year period. Round your answer to the nearest cent.)

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Expert Answer

Step 1

Given: -

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It is given that Lauren plans to deposit $6000 into the account at the beginning of next month and $250/- per month into the same account at the end of that month and at the end of each subsequent month for the next 4 years It is also given that bank pays interest rate of 5%/year compounded monthly

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Step 2

To find: -

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The total amount in the account of Lauren at the end of 4 years.

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Step 3

Formula use...

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пxt r Amount P1+ п P principal amount rate of interest t=time period n number of intervals

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