How much will you have at the end of 5 years in a European vacation account if you deposit $200 a month in an account that is paying a nominal 12 percent per year, compounded monthly

The final value is $16,333.93

Explanation:

Giving the following information:

You deposit $200 a month for 5 years on an account with an annual interest rate of 12% compounded monthly.

First, we need to calculate the monthly interest rate:

Interest rate = 0.12/12 = 0.01

Now, we can calculate the future value using the following formula:

FV = {A*[ (1+i) ^n-1]}/i

A = monthly deposit = 200

i = 0.01

n = 5*12 = 60

FV = {200*[ (1.01^60) - 1]} / 0.01 = $16,333.93