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natita [175]
3 years ago
12

Jennifer wants to take a trip around the world. She plans to deposit $125 at the beginning of each month into an investment with

a 3.75 interest rate, compounded monthly. How much will she have in the account in 8 years?
A. 13, 969.10
B.14, 012.75
C. 110, 885.27
D. 115, 043.47
Mathematics
2 answers:
andre [41]3 years ago
4 0
The formula of the future value of annuity due is
A=p [(1+r/k)^(kn)-1)/(r/k)]×(1+r/k)
A future value of annuity due
P payment 125
R interest rate 0.0375
K compounded monthly 12
N time 8 years
Solve for A
A=125×(((1+0.0375÷12)^(12
×8)−1)÷(0.0375÷12))×(1
+0.0375÷12)
=14,012.75
Helga [31]3 years ago
3 0
The answer to that is 14012.75
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