Assume that you open a bank account that promises a fixed rate of interest of 3%...

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Assume that you open a bank account that promises a fixed rate of interest of 3% per year for 5 years, with monthly compounding. The bank allows you to make additional contributions. Suppose that you make a monthly deposit of $1,000 at the end of each month for 5 years (and do not take any withdrawals until the end of 5 years). You judge that the bank will remain solvent for at least 5 years. Given this information, which of the following formulas is the correct one for calculating your balance in 5 years? (1+(0.03/12)) 60-1 (0.03/12) FV 1,000- 1-(1+(0.03/12))-60 (0.03/12) FV 1,000- 1-(1+0.03) FV 1,000- 0.03 (1+0.03)5-1 FV 1,000- 0.03 Assume that you open a bank account that promises a fixed rate of interest of 3% per year for 5 years, with monthly compounding. The bank allows you to make additional contributions. Suppose that you make a monthly deposit of $1,000 at the end of each month for 5 years (and do not take any withdrawals until the end of 5 years). You judge that the bank will remain solvent for at least 5 years. Given this information, which of the following formulas is the correct one for calculating your balance in 5 years? (1+(0.03/12)) 60-1 (0.03/12) FV 1,000- 1-(1+(0.03/12))-60 (0.03/12) FV 1,000- 1-(1+0.03) FV 1,000- 0.03 (1+0.03)5-1 FV 1,000- 0.03

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