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?
$8,267.58
$5,597.57
$9,793.30
$12,851.12

Answer 1

this looks familiar

Answer 2

5000 + 12(75) is one year, compound it by (1+.0085/12)

add 12(75) to that amount for the second year, and compound again

do this for 5 years total

Answer 3

Never got a answer.

Answer 4

y1: (5000 + 12(75))(1+.0085/12)
y2: ((5000 + 12(75))(1+.0085/12) + 12(75))(1+.0085/12)
y3: (((5000 + 12(75))(1+.0085/12) + 12(75))(1+.0085/12)+12(75))(1+.0085/12)
+ ....

y1: (Bo + D)k
y2: Bok^2 + Dk + Dk^2
y3: Bok^3 + Dk + Dk^2 + Dk^3

yn: Bok^n + Dk + Dk^2 + Dk^3 + Dk^(n-1)
Bok^n + Dk (1-k^(n-1))/(1-k)

sounds about right to me, but id have to recheck that sum for Dk to be sure

Answer 5

S = k + k^2 + k^3 + ... + k^n
-kS = - k^2 - k^3 - ... -k^n - k^(n+1)
-----------------------------------
(1-k)S = k - k^(n+1)

S = (k - k^(n+1))/(1-k)

S = k (1 - k^n)/(1-k)

Answer 6

every way i do it i get about 9527 ....

Answer 7

So ill go with the third choice.

Answer 8

it does seem the most reasonable to me as well. i might just be reading the information a little wrong is all. OR they worked it with an approximation