Question

You plan to buy a house in 6 years. You want to save money for a down payment on the new house. You are able to place $401 every month at the end of the month into a savings account at an annual rate of 14.64 percent, compounded monthly. How much money will be in the amount after you made the last payment?

Answer 1

This question is based on the concept of future value of annuity.
Annuity is fixed amount paid after a regular interval of time.
Future Value of $ 1		=	(((1+i)^n)-1)/i			Where,
		=	(((1+0.0122)^72)-1)/0.0122			i	=	0.1464/12	=	0.0122
		=	$ 114.29			n	=	6*12	=	72
Future Value of annuity of $ 401			=	$         401	*	$ 114.29
			=	$45,828.57
Thus, after last payment amount will become $ 45,828.57