# In order to accumulate enough money for a down payment on a​house, a couple deposits $370 per month into an account paying 6% compounded monthly. If payments are made at the end of each​period, how much money will be in the account in 7​years? geneth1u 2022-09-13 Answered In order to accumulate enough money for a down payment on a​house, a couple deposits$370 per month into an account paying 6% compounded monthly. If payments are made at the end of each​period, how much money will be in the account in 7​years?
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detegerex
Total Amount at the end of period is given by below formula
$A=P\left(\left(1+r{\right)}^{n}-1\right)/r$
where P is monthly deposit = \$370 in this case
r is rate of interest per compounding period = 6%/12 = 0.005 in this case
n is number of periods $=12\cdot 7=84$ in this case
Substituting the above we get
Amount $=370\cdot \frac{\left(1+0.005{\right)}^{84}-1}{0.008}\phantom{\rule{0ex}{0ex}}=370\cdot \frac{1.5203-1}{0.005}\phantom{\rule{0ex}{0ex}}=370\cdot \frac{0.5203}{0.005}\phantom{\rule{0ex}{0ex}}=370\cdot 104.073\phantom{\rule{0ex}{0ex}}=38507$