Thread: Annuities and Interest Formulas

So in my math class I have decided to do a project on Annuties and Interest but I have run into a problem.

So this is the formula I use for it FV=PMT (1 + i)n -1 / i

i= Interest
n= number of compounding periods
PMT= Amount of Periodic Payment
FV= Future Value

So I had to make up my own Annuity and Interest problem and then solve it in a real life situation

So I decided to do this.

I want to invest $5,000 into a savings account at an interst of %4 compounded monthly. How much would it earn at the end of 5 years?

i= %4 (percent) / 12 (months)= %0.333 (repeating) per month in Interest.

n= (12)[months] x (5)[years]= 60[months]

PMT= $5,000

The equation is 5,000(1.0333)60-1/0.0333

IF I got everything right.

But for some reason when I try to calculate this I get a syntax error?

Any reason why this may be?

Use a simpler formula: A = P(1+i)^n

A = ??? (solving for this)
P = 5000
I = 4% / 12
n = 5*12 = 60

FV = 100(1.004167)60 -1 ÷ .004167
= 6,800.68.

Can anyone tell me how this should be calculated? I can never get the answer.