In order to purchase a new freezer in 4 years, the Steakhouse Restaurant has decided to deposit $1,700.00 in an account that earns 2% per year compounded monthly for 4 years. How much money will be in the account in 4 years?
How much money will be in the account in 4 years?
$1,841.47
I found this answer by using a function in Microsoft Excel. If you have excel enter this formula into a cell:
=FV((0.02/12),48, 0,-1700)
The FV stands for future value which is the function that will give you the future value of money. The first number is .02/12 which is the monthly interest rate. The second number is 48 which is the number of months. The third number is the amount of additional deposits per month. The last number is the starting amount.
Reply:poster one is right -- in the future when you have money problems you can type how to calculate money into yahoo and it will give you the formula to figure it out!!
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