Heidi is planning to purchase a car but does not want to borrow money from the bank so she plans to save for five years. She opens an account and deposits $2,500. At the beginning of each month, she deposits $125 into the account. 

If the account pays interest at the rate of 5.5% per year, how much will she have saved to buy the car at the end of five years?

Answer rating: 100% (QA)

To calculate the future value of Heidis savings we can use the future value of an annuity formula FV ... View the full answer