Question

Financial algebra. Help!!!!! Last Question!!!
Jerry starts to save at age 35 for a vacation home that he wants to buy for his 50th birthday. He will contribute $300 each month to an account, which earns 1.7% interest, compounded annually. What is the future value of this investment, rounded to the nearest dollar, when Jerry is ready to purchase the vacation home?
Answers:
$61,960
$60,924
$5,077
$5,163
This is the only question I couldn't figure out , I just need help with it please. Thanks

Answer 1

@jim_thompson5910

Answer 2

@whpalmer4

Answer 3

@amistre64

Answer 4

can someone help me please

Answer 5

@Mimi_x3

Answer 6

Ok so firstly since its compounded annually lets determine how much we deposit per yr into the acct since we anayways only get interest once a yr
so if we deposit 300 per month then how much do we deposit annually?

Answer 7

well annually would be once a year right

Answer 8

Yes

Answer 9

so now what

Answer 10

sooo if we deposit 300 dollars every month how much wld that be in total at the end of the year?

Answer 11

3,600

Answer 12

do you know which formula to use? I tried doing Fv=Pv(1+ I)^nt
but I didn't get any of the answers

Answer 13

Yes so every yr we deposit $3600

Now to determine the Future Value of an investment we use the formula
\[ FV =\frac{PMT*((1+i)^{n}-1)}{i}\]
Where PMT is the annual payment
i=interest rate
and n is the amount of years

Answer 14

so is $3600 the PMT or $300