Tom's account begins with $500, and earns 6% per year, compounded
monthly. He deposits an additional $50 at the end of each month. What
will the balance be at the end of one year?
The variables are:
|N = 12||I = 6/12 = 0.5||PMT = 50 increasing||PV = 500||FV = ???|
- The keystrokes are:
- 2nd FIN
50 +/- PMT
The answer is $1,147.62, rounded to the nearest cent.