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goblinko [34]
3 years ago
8

What is the total amount in an account that has had $45 per month added into it for 30 years and grew with an annual interest ra

te of 8%?
Mathematics
1 answer:
Lena [83]3 years ago
4 0

The Future Value of an Annuity is given by:FV = P [(1 + r)^n -1 / r] where the periodic payment P = $45  
N = number of period = 360. And r = rate per period = (0.08/12) = 0.0066667  
So we have 45[((1 + 0.0066667)^(360) - 1)/ 0.0066667] = $16, 405. 27
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