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Math Help - series problem. thanks for any help

  1. #1
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    series problem. thanks for any help

    Mike and Amanda want to purchase a house. Suppose they invest 400 dollars per month into a mutual fund. How much will they have for a downpayment after 3 years if the per annum rate of return of the mutual fund is assumed to be 10 percent compounded monthly?
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  2. #2
    MHF Contributor Mathstud28's Avatar
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    I am not good at money problems

    Quote Originally Posted by waite3 View Post
    Mike and Amanda want to purchase a house. Suppose they invest 400 dollars per month into a mutual fund. How much will they have for a downpayment after 3 years if the per annum rate of return of the mutual fund is assumed to be 10 percent compounded monthly?
    but could it be \sum_{n=0}^{36}{400\bigg(\frac{11}{10}\bigg)^{n}}=  132000
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  3. #3
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    what do you get for the final value i keep summing it up and i cant get the right answer. thanks
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  4. #4
    MHF Contributor Mathstud28's Avatar
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    Just so you know

    Quote Originally Posted by waite3 View Post
    what do you get for the final value i keep summing it up and i cant get the right answer. thanks
    It would be \sum_{n=0}^{36}{400\bigg(\frac{11}{10}\bigg)^{n}}=  400\cdot\frac{\frac{11}{10}\bigg(1-\bigg(\frac{11}{10}\bigg)^{36}\bigg)}{1-\frac{11}{10}}
    Last edited by Mathstud28; April 10th 2008 at 03:41 PM.
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