a person deposits a 10000 lottery prize at n 1 in a bank sa

a person deposits a $10,000 lottery prize at n = -1 in a bank savings count and makes no further deposits. The bank offers an annual precent yield (interest rate) of 12% per year (or 1 - (1.12)^(1/12) per month). Find the savings account balance y[n], where n indicates the nth month.

Solution

p = r (PV)/(1-(1+r)^(-n))

p= payment

r= rate of interest

n= number of years

PV = present value

y[n]= 10000 x 0.12 /(1 - (1.12)^(-1/12n))