The annuity of the monthly deposit into an account that pays 1.5% interest, compounded monthly, for 35 years is $333.71
<h3>What is annuity?</h3>
An annuity is a series of payments made at equal period of time.
future value = annuity x [(1 + i)ⁿ - 1] / i
annuity = $125.30
i = 1.5% / 12 = 0.00125
n = 35 years x 12 months = 420
future value = $125.30 x [(1 + 0.00125)⁴²⁰ - 1] / 0.00125
future value = $69,156.049 ≈ $69,156.05
annuity = [i x (present value)] / [1 - (1 + i)⁻ⁿ]
i = 1.5% / 12 = 0.00125
n = 20 years x 12 months = 240
present value = $69,156.05
annuity = (0.00125 x $69,156.05) / [1 - (1 + 0.00125)⁻²⁴⁰]
annuity = $86.45 / 0.25904
= $333.71
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