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aniked [119]
2 years ago
14

Help me solve this image please!!!

Mathematics
1 answer:
tresset_1 [31]2 years ago
5 0

Based on the information, Christian would have $5525.5 of an annuity.

<h3>How to calculate the annuity?</h3>

According to the given information, the number of coffees per week is 3 then, per month is 3x4 = 12

Each coffee is $4.5. Then monthly expenditure for coffees is 12 x 4.5 = $54

Rate of interest r = 1.6% = 1.6/100 = 0.016 and for monthly compounding r = 0.016/12 = 0.00133

n = number of payments = 8 x 12 = 96

We can use the formula for finding the future value as below

FV = C x [ ( 1 + r )n-1 ] / ( r )

FV = 54 x [ ( 1 + 0.00133 )96 – 1 ] / (0.00133)

= 54 x [ (1.13609 - 1)] / (0.00133)

= 54 x 0.13609 / (0.00133)

= 54 x 102.3233

= 5525.5

Therefore Christian would have $5525.5 of the annuity.

Learn more about annuity on:

brainly.com/question/5303391

#SPJ1

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