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lutik1710 [3]
3 years ago
10

Suppose Becky invests in an annuity that pays 4.3% annual interest, compounded monthly and contributes $225 every month for 20 y

ears. She wants to calculate the value at the end of the 20 years and does so using the following computation:
Mathematics
1 answer:
aleksklad [387]3 years ago
4 0

Answer:

$85365.90

Step-by-step explanation:

Let's start by finding the effective rate of interest

.043/12=.00385333

225*\frac{(1+.00385333)^{20*12}-1}{.00385333}=85365.89513

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