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Sally deposited $250 a month in her savings account for 36 months. For the next 6 years she made no deposits. What is the future worth in Sally's savings account at the end of the 9 years, if the account earned 2% annual interest, compounded monthly ?

Respuesta :

Answer:

$10,437

Explanation:

n = 36 months

PMT = $ -250 (Monthly deposit made by Sally)

PV = 0 (No initial investment at year 0)

i/r = 2%/year = 0.167% / month

FV = ? (Future value of the account at the end of 36th month)

Using financial calculator, FV = $9,268

The value of Sally's savings at the end of 9th year = $9,268 x 1.02^6 = $10,437

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