Question
In: Finance
If you invest $200 at the end of each month for five years and you earn...
If
you invest $200 at the end of each month for five years and you
earn 9% interest compounded monthly, how much will you have
accumulated at the end of the fifth year?
Solutions
Expert Solution
Please go through the table show below
| Payment | RD | Begin Balance | Interest | Enging Balance | |
| 1 | $ 200.00 | $ - | $ - | $ 200.00 | |
| 2 | $ 200.00 | $ 200.00 | $ 1.50 | $ 401.50 | |
| 3 | $ 200.00 | $ 401.50 | $ 3.01 | $ 604.51 | |
| 4 | $ 200.00 | $ 604.51 | $ 4.53 | $ 809.05 | |
| 5 | $ 200.00 | $ 809.05 | $ 6.07 | $ 1,015.11 | |
| 6 | $ 200.00 | $ 1,015.11 | $ 7.61 | $ 1,222.73 | |
| 7 | $ 200.00 | $ 1,222.73 | $ 9.17 | $ 1,431.90 | |
| 8 | $ 200.00 | $ 1,431.90 | $ 10.74 | $ 1,642.64 | |
| 9 | $ 200.00 | $ 1,642.64 | $ 12.32 | $ 1,854.96 | |
| 10 | $ 200.00 | $ 1,854.96 | $ 13.91 | $ 2,068.87 | |
| 11 | $ 200.00 | $ 2,068.87 | $ 15.52 | $ 2,284.38 | |
| 12 | $ 200.00 | $ 2,284.38 | $ 17.13 | $ 2,501.52 | |
| 13 | $ 200.00 | $ 2,501.52 | $ 18.76 | $ 2,720.28 | |
| 14 | $ 200.00 | $ 2,720.28 | $ 20.40 | $ 2,940.68 | |
| 15 | $ 200.00 | $ 2,940.68 | $ 22.06 | $ 3,162.74 | |
| 16 | $ 200.00 | $ 3,162.74 | $ 23.72 | $ 3,386.46 | |
| 17 | $ 200.00 | $ 3,386.46 | $ 25.40 | $ 3,611.85 | |
| 18 | $ 200.00 | $ 3,611.85 | $ 27.09 | $ 3,838.94 | |
| 19 | $ 200.00 | $ 3,838.94 | $ 28.79 | $ 4,067.74 | |
| 20 | $ 200.00 | $ 4,067.74 | $ 30.51 | $ 4,298.24 | |
| 21 | $ 200.00 | $ 4,298.24 | $ 32.24 | $ 4,530.48 | |
| 22 | $ 200.00 | $ 4,530.48 | $ 33.98 | $ 4,764.46 | |
| 23 | $ 200.00 | $ 4,764.46 | $ 35.73 | $ 5,000.19 | |
| 24 | $ 200.00 | $ 5,000.19 | $ 37.50 | $ 5,237.69 | |
| 25 | $ 200.00 | $ 5,237.69 | $ 39.28 | $ 5,476.98 | |
| 26 | $ 200.00 | $ 5,476.98 | $ 41.08 | $ 5,718.05 | |
| 27 | $ 200.00 | $ 5,718.05 | $ 42.89 | $ 5,960.94 | |
| 28 | $ 200.00 | $ 5,960.94 | $ 44.71 | $ 6,205.65 | |
| 29 | $ 200.00 | $ 6,205.65 | $ 46.54 | $ 6,452.19 | |
| 30 | $ 200.00 | $ 6,452.19 | $ 48.39 | $ 6,700.58 | |
| 31 | $ 200.00 | $ 6,700.58 | $ 50.25 | $ 6,950.83 | |
| 32 | $ 200.00 | $ 6,950.83 | $ 52.13 | $ 7,202.97 | |
| 33 | $ 200.00 | $ 7,202.97 | $ 54.02 | $ 7,456.99 | |
| 34 | $ 200.00 | $ 7,456.99 | $ 55.93 | $ 7,712.92 | |
| 35 | $ 200.00 | $ 7,712.92 | $ 57.85 | $ 7,970.76 | |
| 36 | $ 200.00 | $ 7,970.76 | $ 59.78 | $ 8,230.54 | |
| 37 | $ 200.00 | $ 8,230.54 | $ 61.73 | $ 8,492.27 | |
| 38 | $ 200.00 | $ 8,492.27 | $ 63.69 | $ 8,755.96 | |
| 39 | $ 200.00 | $ 8,755.96 | $ 65.67 | $ 9,021.63 | |
| 40 | $ 200.00 | $ 9,021.63 | $ 67.66 | $ 9,289.30 | |
| 41 | $ 200.00 | $ 9,289.30 | $ 69.67 | $ 9,558.97 | |
| 42 | $ 200.00 | $ 9,558.97 | $ 71.69 | $ 9,830.66 | |
| 43 | $ 200.00 |
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