This is my problem:
Lauren plans to deposit $5000 into a bank account at the beginning of next month and $200/month into the same account at the end of that month and at the end of each subsequent month for the next 5 yr. If her bank pays interest at a rate of 6%/year compounded monthly, how much will Lauren have in her account at the end of 5 yr? (Assume she makes no withdrawals during the 5-yr period.
Formula I used looks like this:
S=R [ (1+.06/12) ^60-1]/.06/12= 13954
I suppose I need help with the second part since I have no clue how to include the initial $5000. I am having trouble plugging the correct numbers into A= p(1+rt)^nt. I feel very stuck...
Help and guidance is greatly appreciated, thank you.