Answered

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Bill plans to deposit $200 into a bank account at the end of every month. The bank account has a nominal interest rate of 8 percent and interest is compounded monthly. How much will Bill have in the account at the end of 2½ years (30 months)?

Sagot :

I think you will have 6,000 by the end of 2 years

The amount that should have in the account at the closing of 30 months is $6,617.77.

Given that,

  • The rate of interest = 8% ÷ 12 = 0.6666%
  • The nper is = 2.5 × 12 = 30
  • The monthly payment or pmt is $200
  • The present value be $0

Now the following formula should be used:

=-FV(RATE,NPER,PMT,PV,TYPE)

After applying the above formula, the future value is $6,617.77.

Therefore we can conclude that The amount that should have in the account at the closing of 30 months is $6,617.77.

Learn more about the future value here: brainly.com/question/8286272

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