9514 1404 393
Answer:
no
Step-by-step explanation:
The first step is to understand that the question is asking about the future value of series of payments. An appropriate formula is ...
P = A(n/r)((1 +r/n)^(nt) -1)
where P is the future value, A is the periodic payment made n times per year for t years. r is the annual interest rate.
The next step is to substitute the given values and do the arithmetic. Using the given values, we have ...
P = 250(12/0.056)((1 +0.056/12)^(12×2.5) -1) ≈ 8030.32
Shen will have accumulated about $8,030.32, which is not enough to meet his goal.
