Westonci.ca is the ultimate Q&A platform, offering detailed and reliable answers from a knowledgeable community. Connect with a community of experts ready to provide precise solutions to your questions on our user-friendly Q&A platform. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.
Sagot :
Answer:
A convenient formula to use is
S = ((1 + i)^n - 1) / i where S is the value of 1$ deposited for n periods at an interest rate of i
in this case n = 12 * 28 = 336 periods of deposit at an interest rate of
.0021 / 12 = .00175 = i
S = (1.00175^336 - 1) / .00175 = 456.8338 the value of 1$ after 336 periods
350 * 456.8338 = 159891.81 the value of 350 deposited monthly
Note that 350 * 336 would be 117,600
One must be careful to distinguish the above formula from
(1 - (1 + i)^-n) / i which gives the value of 1$ when the borrower is "paying" an interest rate of i - this would be the case for a mortgage - or what is the value of 1$ paid for n periods when paying an interest rate of i
We hope this information was helpful. Feel free to return anytime for more answers to your questions and concerns. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.