Julian is going to deposit $50 into an interest-bearing account each time he is paid for the next 4 years. Julian is paid every month and he earns 3% interest compounded monthly.
This is the formula you would use to find the FV of Julian's deposits:
FV=P{[1 + R]^N - 1/ R}
FV=50 x {[1 + 0.03/12]^(4*12) - 1 / (0.03/12)}
FV=50 x {[1 + 0.0025]^48 - 1 / (0.0025)}
FV=50 x {[1.0025]^48 - 1 / (0.0025)}
FV=50 x 50.93121.......
FV=$2,546.56 - This is what Julian will have at the end of 4 years.
