Suppose mrs. reyes would like to save php 1,000.00 at the end of each month for 9 months in a fund that gives 5% per annum compounded monthly. how much would the value of her savings be after 7 months?

After 7 months her savings will be 7117.64.

Step-by-step explanation:

Given :

Rate is r = 5% = 0.05

Compounding interval, n = 12

Solution :

Now,

Now first deposit duration is 7 months. Therefore, its value is  

Now second deposit duration is 6 months. Therefore, its value is

Now third deposit duration is 5 months. Therefore, its value is

and so on.

The values are in geometric sequence where

We know that the sum of the geometric sequence is given by,

   ------ (1)

Now put the values of a and r in equation (1),

After 7 months her savings will be 7117.64.

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