Answer to Question #280802 in Financial Math for vangie

Question

belle Benigna invested 2,500 at the beginning of each month 12% compounded monthly how much would be in the account after 5 years

Answer 1

$$FV_{Annuity\ Due}=C\bigg[\dfrac{(1+r/n)^t-1}{r/n}\bigg](1+r/n)$$

$$FV_{Annuity\ Due}$$

$$=2500\bigg[\dfrac{(1+0.12/12)^{12(5)}-1}{0.12/12}\bigg](1+0.12/12)$$

$$=206215.92$$

$206215.92$ would be in the account after 5 years.