Answer:
44,956
Explanation:
Future value
A family is saving up for a house payment. If they deposit $400 each month into an account that pays 4.8% interest compounded monthly how much money will they have in 8 years from now
The formula =
P = d( (1 + r/k)^nk - 1)/r/k
d = Amount deposited monthly = $400
r = interest rate = 4.8% = 0.048
k = compounding frequency = 12 months
n = number of years = 8
P = 400((1 + 0.048/12)^8 × 12 - 1)/0.048/12
P = (400 ( 1 + 0.004)^96 - 1)/0.004
P = (400 ( 1.4495569791 - 1)/0.004
P = 40(0.4495569791)/0.004
P = 179.82279162/0.004
P = 44955.697906
Approximately
P = 44,956