The two words most often used by economists are
1 answer:
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Answer: $13,464.23
Explanation:
Kate is saving a constant amount of $1,410 per year so indeed it is an annuity.
The amount she will have in the account after 8 years is the future value of the annuity after 8 years.
The formula is;
Future Value of Annuity = Annuity * (future value factor of annuity, 8 years, 5%)
= 1,410 * 9.5491
= 13,464.231
= $13,464.23
