Question

If Bob deposits $133 at the end of every month in an account paying 5.9% interest compounded annually, how much money will he have in the account in 6 years? Round your final answer to the nearest cent (2 decimal places)

Answer 1

10140.96 dollars

Explanation:

Bob deposits 133 dollars at the end of every mounth in an account paying 5.9 percent interest compounded annually :

• We need to khow what is the amount bob has in a total year without interests
• let A be the amount we are looking for :
• A = 12*133=1596
• so bob has 1596 dollars each year

We khow that the interest is worth 5.9 percent

we can state :

• 1596⇒ 100 percent
• x(the interest value)⇒ 5.9 percent
• x = (1596*5.9)/100 = 94.16 dollars each year

Let At be the toatl amount after six years

At= 1596*6+94.16*6= 10140.96