# Monthly deposits to bank with PA interest rate - after X years

• Jan 14th 2013, 10:51 AM
ManIsuck
Monthly deposits to bank with PA interest rate - after X years
I'm having very hard time figuring out how to solve this problem in a simple way, I mean there has to be one, right?
Problem: You deposit \$250 every month to a bank account and never withdraw from it, the bank account has a 3% per annum (yearly) interest rate. How much money is there on the account after lets say 5 years?
• Jan 14th 2013, 12:33 PM
bjhopper
Re: Monthly deposits to bank with PA interest rate - after X years
use the compound amount factor(1+i)^n -1/i whereR is given and S = final sum S =R* Factor
i is monthly interest
n= number of payments
R is monthly payment
• Jan 14th 2013, 12:49 PM
ManIsuck
Re: Monthly deposits to bank with PA interest rate - after X years
Unfortunately I'm still having problems getting it. How is the monthly interest expressed in that factor?
• Jan 14th 2013, 01:33 PM
ManIsuck
Re: Monthly deposits to bank with PA interest rate - after X years
Got it done finally. Thanks for the help.