2 years ago

I am stuck!! Help me!! I have a test tomorrow‼️‼️‼️‼️‼️

Mathematics

1 answer:

serg [7]2 years ago

4 0

X and Y both equal 1

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Answer-

The amount will be $8944.62 after 5 years.

Solution-

We know that,

$\text{FV of annuity}=P[\dfrac{(1+r)^n-1}{r}]$

Where,

P = Payment = $50 monthly

r = rate of interest compounded monthly= $3\frac{1}{4}=3.25\%=0.0325$

n = number of period = 5 years = 5×12 = 60 months

Putting the values in the formula,

$\text{FV of annuity}=50[\dfrac{(1+0.0325)^{60}-1}{0.0325}]$

$=50[\dfrac{(1.0325)^{60}-1}{0.0325}]$

$=50[\dfrac{6.8140-1}{0.0325}]$

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$=50\times 178.8923$

$=8944.62$

Therefore, the amount will be $8944.62 after 5 years.

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