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Question 4.P.5: A man plans to save $1000 a month for the next 20 years, at ......

A man plans to save $1000 a month for the next 20 years, at 10% per year, compounded monthly. How much money will he have at the end of 20 years?

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Equation (2.3), with the appropriate substitutions, gives

F/A  =  \frac{(1  +  i)^n  –  1}{i}    (2.3) \\\\ F  =  \$1000\frac{ (1  +  0.10/12)^{(12)(20)}  –  1}{0.10/4}  =  \$1000\frac{6.32807}{0.0083333}  =  \$759  371.43

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