Math Problem Statement
Lauren plans to deposit $6000 into a bank account at the beginning of next month and $250/month into the same account at the end of that month and at the end of each subsequent month for the next 3 years. If her bank pays interest at a rate of 4%/year compounded monthly, how much will Lauren have in her account at the end of 3 years? (Assume she makes no withdrawals during the 3-year period. Round your answer to the nearest cent.)
Solution
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Math Problem Analysis
Mathematical Concepts
Compound Interest
Future Value of Lump Sum
Future Value of Annuity
Formulas
Future Value of a Lump Sum: FV = PV * (1 + r/n)^(nt)
Future Value of an Annuity: FV = P * [(1 + r/n)^(nt) - 1] / (r/n)
Theorems
Compound Interest Theorem
Suitable Grade Level
Grades 10-12
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