you have decided to place 522 in equal deposits every month

you have decided to place 522 in equal deposits every month at the beginning of the month into a savings account earning 4.28 % per year, compounded monthly or the next 14 years. the first deposit is made today. how much money will be in the account at the end of that time period?

Solution

Monthly Deposit = 522
Annual Interest Rate = 4.28%
Monthly Interest Rate = 0.3567%
Period = 14 years or 168 months

Accumulated Sum = 522*1.003567^168 + 522*1.003567^167 + 522*1.003567^166 + .... + 522*1.003567^2 + 522*1.003567
Accumulated Sum = 522 * 1.003567 * (1.003567^168 - 1) / 0.003567
Accumulated Sum = 522 * 230.374
Accumulated Sum = 120,255.23

So, balance at the end of the period is 120,255.23