Cam saved $215215 each month for the last four years while he was working. Since he has now gone back to school, his income is lower and he cannot continue to save this amount during the time he is studying. He plans to continue with his studies for four years and not withdraw any money from his savings account. Money is worth 7.272% compounded monthly.

(a) How much will Cam have in total in his savings account when he finishes his studies?

(b) How much did he contribute?

(c) How much will be interest?

(a) The future value is $

Tips:

Use the formula for the future value of an ordinary simple annuity, shown below, to find the value after all the payments have been made. (1 + i)" - 1 FV, = PMT Then use this value as the present value in the future value formula for compound interest