Lauren plans to deposit $9000 into a bank account at the beginning of next month and...

Lauren plans to deposit $9000 into a bank account at the beginning of next month and $150/month into the same account at the end of that month and at the end of each subsequent month for the next 4 years. If her bank pays interest at a rate of 5%/year compounded monthly, how much will Lauren have in her account at the end of 4 years?

(Assume she makes no withdrawals during the 4-year period. Round your answer to the nearest cent.)
$

Expert Solution

At the end of four years Lauren has 10988.0582+7952.23278=$18940.29

Answer to the question is $18940.29-$150=$18790.29 if we dont take into account that an amount of $150 was paid at the end of the last month of the 4th year.

Rahul Sunny answered 8 months ago

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