The total amount of the annuity on Jennifer’s 18th birthday is $655.02
The interest earned is $55.02.
<h3>What is the total value of the annuity?</h3>
An annuity is a fixed payment of money over a specified period of time.
The formula for determining the value of the annuity when Jennifer turns 18 is: yearly deposit x annuity factor
Annuity factor = {[(1+r)^n] - 1} / r
Where:
- r = interest rate = 3.5%
- n = number of years = 18 - 12 = 6
Future value of the annuity: $100 x [{(1.035^6) - 1} / 0.035} = $655,02
Interest earned = future value - total amount deposited
655.02 - (100 x 6)= $55.02
To learn more about annuities, please check: brainly.com/question/24108530
#SPJ1
