Question

​Recently, More Money 4U offered an annuity that pays 6.0 % compounded monthly. If $ 2 comma 154 is deposited into this annuity every​ month, how much is in the account after 11 ​years? How much of this is​ interest?

Answer 1

Answer:

$109,983.67

Explanation:

=(1+r) x P [1 - (1+r)^-n(raise to power-n) /r]

= (1+0.6) x 2,154 (1-(1+0.06)^-11 / 0.06

= 2283.240 (1-(-1.89)/0.06

= 2283.240 (2.89/0.06)

=2283.240 (48.17)

=$109,983.67