Question

Your business needs to put aside funds to purchase new office equipment in 4 years. You can afford to put aside $250 per month, and you are able to invest in an account offering 3% per year, compounded monthly. How much money will this amount to at the end of this time? $12,732.80 $12,451.67 ООО $27.135.16 $13,014.63

Answer 1

x = 3 %= 3/100 = 0.03/12 = 0.0025

n = 4 years

PMT = 250

FV = future value

`\begin{gathered} FV=PMT((1+x)^n-1)/(x) \\ FV=250*((1+0.0025)^(12*4)-1)/(0.0025) \\ FV=\text{ \$}12732.802104 \\ FV=\text{ \$}12732.80 \end{gathered}`

The answer is A.