Question

You are going to start saving (not today but at the end of the first month) $350 per month into an investment account that pays 8% APR if you keep this up for 20 years how much will you have saved?

Answer 1

To determine how much will be saved after 20 years with a monthly deposit of $350 into an investment account that pays 8% APR, we can use the formula for compound interest.

Step-by-step explanation:

To determine how much will be saved after 20 years with a monthly deposit of $350 into an investment account that pays 8% APR, we can use the formula for compound interest. The formula is: A = P(1+r/n)^(nt) where A is the final amount, P is the principal (initial deposit), r is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years. In this case, P = $350, r = 8% or 0.08, n = 12 (since interest is compounded monthly), and t = 20.

By substituting these values into the formula, we have: A = $350(1+0.08/12)^(12*20). Evaluating this expression will give us the final amount saved after 20 years.