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Question

A deposit of $100 is made at the beginning of each month in an account at an annual interest rate of 12% compounded monthly. The balance in the account after n months is

An=100(101)[(1.01)n1].A_n=100(101)\left[(1.01)^n-1\right] .

Find the balance after 5 years by computing the 60 th term of the sequence.

Solution

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The 60th term of the sequence is:

A60=8248.64\color{#4257b2} A_{60} = 8248.64

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