someone help me with this.
James wants to invest his pocket money. He receives £5 a month which he puts into a savings account earning
compound interest at 0·5% per month.
If James saves his money, how much will be in the account in five years’ time (to the nearest £)?
A £303
B £338
C £349
D £354
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MAIRR
Hmm thanks 4 ur help
I am not getting that answer. Unless I am inputting it wrong into the calculator?
#confused.
12y ago#5josy87's answer is correct.
First calculate the present value by multiplying $5 by the annuity discount factor for 60 periods at 0.5% (0.005) per period, using the formula for the annuity factor.
Then multiply the present value by (1.005)^60 to compound it up for 60 periods at 0.5% per period.
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