Michelle is attending college and has a part-time job. Once she finishes college, Michelle would like to relocate to a metropolitan area. She wants to build her savings so that she will have a "nest egg" to start her off. Michelle works out her budget and decides she can afford to set aside $ per month for savings. Her bank will pay her per year, compounded monthly, on her savings account. What will be Michelle's balance in five years?

$3,232.34

Explanation:

Michelle is depositing a constant amount so this is an annuity. The balance on her account will be the future value of an annuity.

5 years to months = 5 * 12 = 60 months

3% to monthly rate = 3%/12 = 0.25%

Future value of annuity

= $3,232.34

income statement is prepared in order to show the profits and loss of a business. in order to prepare the income statement she should collect all the income and expenses of the product with the cost of production.