Question

Suppose you invest $78 a month in an annuity that earns a 2.8% APR, compounded monthly. How much money will you have in this account after 4 years?
SOMEONE PLEASE HELP

Answer 1

Answer:

$87.23.  

Step-by-step explanation:

We are asked to find the amount after 4 years compounded monthly at the rate of 2.8% APR.

We will use compound interest formula to solve our given problem.

$A=P(1+\frac{r}{n})^nT$, where,

A = Final amount after T years,

P = Principal amount,  

r = Interest rate in decimal form,

n = Number of times interest is compounded per year.

T = Time in years.

Let us convert our given rate in decimal form.

$2.8\%=\frac{2.8}{100}=0.028$

Upon substituting our given values in compound interest formula we will get,

$A=78(1+\frac{0.028}{12})^{12*4}$

$A=78(1+0.002333)^{48}$

$A=78(1.002333)^{48}$

$A=78*1.1183669447674708747$

$A=87.2326216918627282266\approx 87.23$

Therefore, we will have $87.23 in the account after 4 years.

Answer 2

Answer:

3956.84

Step-by-step explanation:

just took the quiz hope this helps