Question

In order to accumulate enough money for a down payment on a​ house, a couple deposits $584 per month into an account paying 6% compounded monthly. If payments are made at the end of each​ period, how much money will be in the account in

5 years?

Answer 1

Okay so if i'm understanding this correctly which I may not be. If they are putting in $584 per month and with the account the bank will add 6% of what they are adding every month then this would be the problem

6% of $584 is 35.04 and 35.04 + 584 = 619.04 so every month they are putting in 619.04 then to find out how much they are putting in per year I just did 619.04 * 12 = 7428.48 so every year they are putting in 7428.48 but it wants to know how much money will be in the account in five years so that would be 7428.48 * 5 = 37142.4 By the way I'mm still not sure if this is how they want you to answer the questions but that is the answer I got.