Question 6
A person invests 100 dollars every month in a recurring deposit which compounds monthly, promising a 10% increase in the principal invested every year. Find the total value of the recurring deposit after 4 years, or after the 48th installment is paid. (Given $1.1^{1/12}=1.00797$.)
**Editorial clarification.** Use an effective annual growth factor of 1.1 and equal monthly intervals. Value the account immediately after the 48th payment, with no interest yet on that payment. Choose the closest listed monetary amount; the options need not contain the correctly rounded exact total. The given decimal is rounded.
Choose one option.
**Editorial clarification.** Use an effective annual growth factor of 1.1 and equal monthly intervals. Value the account immediately after the 48th payment, with no interest yet on that payment. Choose the closest listed monetary amount; the options need not contain the correctly rounded exact total. The given decimal is rounded.
Choose one option.