Answer:
The amount in Bob's account is $26320.516
Explanation:
The total amount saved each month for the down payment (A ) = $315
The interest rate per month (r ) = 0.41 %
Number of years (n ) = 6 years
Below is the calculation to find the total amount in Bob’s account. Here, we will take the number of compounding period as 72 because the interest rate is monthly compounded and there are 72 months in 6 years.
[tex]= A\left [ \frac{\left ( 1+r \right )^{n\times 12}-1}{r} \right ] \\= 315 \left [ \frac{\left ( 1+ 0.0041 \right )^{6\times 12}-1}{0.0041} \right ] \\= 315\left [ \frac{\left ( 1+ 0.0041 \right )^{72}-1}{0.0041} \right ] \\= $ 26320.516[/tex]
