Answer:
The correct answer is that Jackie will have US$ 10,136.11 in her account after depositing US$ 150 monthly during five years
Step-by-step explanation:
1. Let's review the information given to us for solving the question:
Monthly saving = US$ 150
Annual Interest rate = 4.75%
Monthly interest rate = 0.0475/12 = 0.003958 = 0.39%
Duration of the investment = 5 years = 60 months
2. For calculating how much Jackie will have in her account after 5 years we use the Future value formula, this way:
FV = Monthly saving * [(1 + Monthly Interest rate) ^number of periods - 1/ Monthly interest rate]
Replacing with the real values, we have:
FV = 150 * [(1 + 0.003958) ^60 - 1/ 0.003958]
FV = 150 * [(1.268074 - 1/ 0.003958]
FV = 150 * (0.26748064/ 0.003958)
FV = 150 * 67.5740564
FV = 10,136.11
Jackie will have US$ 10,136.11 in her account after depositing US$ 150 monthly during five years
