Suppose a recent college graduate's first job allows her to deposit $150 at the end of each month in a savings plan that earns 6%, compounded monthly. This savings plan continues for 15 yearsbefore new obligations make it impossible to continue. If the accrued amount remains in the plan for the next 15 years without deposits or withdrawals, how much money will be in the account 30years after the plan began? (Round your answer to the nearest cent.)$

Question
Asked Dec 4, 2019
24 views
Suppose a recent college graduate's first job allows her to deposit $150 at the end of each month in a savings plan that earns 6%, compounded monthly. This savings plan continues for 15 years
before new obligations make it impossible to continue. If the accrued amount remains in the plan for the next 15 years without deposits or withdrawals, how much money will be in the account 30
years after the plan began? (Round your answer to the nearest cent.)
$
help_outline

Image Transcriptionclose

Suppose a recent college graduate's first job allows her to deposit $150 at the end of each month in a savings plan that earns 6%, compounded monthly. This savings plan continues for 15 years before new obligations make it impossible to continue. If the accrued amount remains in the plan for the next 15 years without deposits or withdrawals, how much money will be in the account 30 years after the plan began? (Round your answer to the nearest cent.) $

fullscreen
check_circle

Expert Answer

star
star
star
star
star
1 Rating
Step 1
help_outline

Image Transcriptionclose

The saving plan of a graduate student continues for 15 years or 12 x15 180 months The saving amount at the end month is $150. The interest rate is 6% annually. In compounded monthly rate of interest will be wwww. 6 = 0.005 r =_ 1200 Hence, the future value amount after 15 years will be obtained as follows. (a.+ r)-1 R saving amount n number of months R(1 FV r rate of intrest 150 (1+0.005) 180 1 0.005 150 x 1.45409356 0.005 218.11403434 43,622.80686 0.005

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Math

Algebra

Other