Tom's account begins with $500,
and earns 6% per year, compounded monthly. He deposits an additional
$50 at the end of each month. What will the balance be at the end of
one year?
The variables are:
N = 12 | I = 6/12 | PMT = 50 increasing | PV = 500 | FV = ??? |
- The keystrokes are:
- 2nd CMR
12 N
0.5 %i
0 PMT
500 PV
2nd FV
The first intermediate answer of $530.84 is noted.
- Then we enter the following:
- 2nd CMR
12 N
0.5 %i
50 PMT
0 PV
2nd FV
The second intermediate answer is $616.78. This is added to the first
intermediate answer to produce the final answer, $1,147.62, rounded to
the nearest cent.