Question

Please help!

Evan opens a savings account with $5,000. He deposits $75 every month into the account that compounds annually and has a 0.85% interest rate. What will his account total be in 5 years?

Answer 1

P = principal amount (the initial amount you borrow or deposit)
r = annual rate of interest (as a decimal)
t = number of years the amount is deposited or borrowed for.
A = amount of money accumulated after n years, including interest.
n = number of times the interest is compounded per year

P = 5000
r = 8.5 / 100 = 0.085
t = 5
A = ???
n = 1

Answer 2

i dont see a payment option in that setup

Answer 3

i would just run a setup of adding payments instead of subtracting them; like this

Bn = Bo k^t + P(1-k^t)/(1-k)

where k = 1+r

Answer 4

might want to make P = 12(75) tho since to adjust for monthly payments

Answer 5

M0 = 5000
M1 = 5000 + 75
M2 = 5000 + 75 + 75
M3 = 5000 + 3(75)

M12 = 5000 + 12(75) ; then compound

(5000 + 12(75))(1+.0085)

M13 = (5000 + 12(75))(1+.0085) + 1(75)
M14 = (5000 + 12(75))(1+.0085) + 2(75)
M15 = (5000 + 12(75))(1+.0085) + 3(75)

M24 = (5000 + 12(75))(1+.0085) + 12(75), and compound

((5000 + 12(75))(1+.0085) + 12(75))(1+.0085)

let k = 1+.0085 for a clean up

((5000 + 12(75))(k) + 12(75))(k)

(5000(k) + 12(75)(k) + 12(75)) (k)

5000(k)^2 + 12(75)(k) + 12(75)(k)^2

hmmm, maybe a geometric sum with (n+1) ?

Answer 6

seems to be writing up like an annuity due structure

Answer 7

or some hybrid monstrocity :)