Question

How much will you have saved after 6 years by contributing 1200 at the end of each year if you expect to earn 11 % on the same investment

Answer 1

you have saved $7332 after 6 years

Explanation:

11% of 1200, 1200 x 0.11 = 132

initial investment after 6 years: 1200 x 6 = 7200

initial + earn: 7200 + 132 = 7332

Answer 2

2244.50

Explanation:

A= P(1+r/n)^nt

A= 1200(1+(.11/1))^6