Question

$1000 is deposited at the end of each month for the next 3 months and interest rate is 6% compounded monthly what is the accumulated future value by the end of month 3?

Answer 1

$1000* (1+1.06+1.06^2)

=$3183.6

Answer 2

at 6% monthly compound interest

$1000 after 1 month becomes $1000*1.06 = $1060

$1000 after 2 months becomes $1000*1.06*1.06 = $1123.6

total end of month 3 = 1000+1060+1123.6 = $3183.6