When Chandran's first child, Johan is born, Chandran invested RM 300 for him at 8% per annum.?

Question

He continues to invest RM 300 on each of Johan's birthday,up to and including his 18th birthday. What will be the total value of the investment on Johan's 18th birthday?

Answer 1

= (Σ({1 + 0.08}^19) + 1) * RM 300
= (41.44626324 +1) * RM 300
= 42.44626324 * RM 300
= RM 12,433.88

Answer: RM 12,433.88

Proof:
Interest Deposit Balance
0 300.00 300.00
1 24.00 300.00 624.00
2 49.92 300.00 973.92
3 77.91 300.00 1,351.83
4 108.15 300.00 1,759.98
5 140.80 300.00 2,200.78
6 176.06 300.00 2,676.84
7 214.15 300.00 3,190.99
8 255.28 300.00 3,746.27
9 299.70 300.00 4,345.97
10 347.68 300.00 4,993.65
11 399.49 300.00 5,693.14
12 455.45 300.00 6,448.59
13 515.89 300.00 7,264.48
14 581.16 300.00 8,145.64
15 651.65 300.00 9,097.29
16 727.78 300.00 10,125.07
17 810.01 300.00 11,235.08
18 898.81 300.00 12,433.89

Answer 2

There are 19 total payments. Recourse to a set of tables gives the amount per unit as 41.4462, so the total will be RM 12,433.86. A financial calculator is convenient for such calculations.

Answer 3

In Excel: =FV(8/100,19,-300)

= 12,433.88