Question

Zachary deposits $390 every month into an account earning an annual interest rate of 4.5% compounded monthly. how much would he have in the account after 11 years, to the nearest dollar? use the following formula to determine your answer. a, equals, d, left bracket, start fraction, left bracket, 1, plus, i, right bracket, to the power n , minus, 1, divided by, i, end fraction, right bracket

Answer 1

Zachary would have approximately $66,454 in his account after 11 years, rounded to the nearest dollar.

Given:

Monthly deposit (d) = $390

Annual interest rate (r) = 4.5%

Monthly interest rate (i) = r / 12 = 4.5% / 12 = 0.375%

Number of periods (n) = 11 years * 12 months/year = 132 months

Formula:

A = d * ((1 + i)^n - 1) / i

Calculation:

A = $390 * ((1 + 0.00375)^132 - 1) / 0.00375

A ≈ $66,453.94