Question

Suppose Mrs. Manda would like to deposit P3,000 every month in a

fund that gives 9%, compounded monthly. How much is the

amount of future value of her savings after 6 months?
​

Answer 1

Given

Suppose Mrs. Manda would like to deposit P3,000 every month in a fund that gives 9%, compounded monthly.

To find:

How much is the amount of future value of her savings after 6 months?

Solution:

The sum of money Mrs. Manda deposited, P = 3000

The rate of interest, R = 9%

The no. of years, n = 6 months = $\frac{6}{12} \:years$

The formula when the interest is compounded monthly is as follows:

$\boxed{\bold{A = P [ 1 + \frac{\frac{R}{12} }{100}]^1^2^n }}$

Now, on substituting the given values of P, R and n in the formula above, we get

$A = 3000 [1 + \frac{\frac{9}{12}}{100} ]^1^2 ^\times ^\frac{6}{12}$

$\implies A = 3000 [1 + \frac{\frac{3}{4}}{100} ]^6$

$\implies A = 3000 [1 + \frac{0.75}{100} ]^6$

$\implies A = 3000 [1 + 0.0075 ]^6$

$\implies A = 3000 [1.0075 ]^6$

$\implies \bold{A = 3137.55}$

Thus, the amount of future value of her savings after 6 months is → P3137.55.

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