A payment of 500$ is made at the end of each month for three years to savings account. The intrest rate is 12% compounded monthly. find the future value of the annuity.
Use this formula to find the Future Value:
FV=P{[1 + R]^N - 1/ R}
FV =500 x {[1 + 0.12/12]^(3*12) - 1 / 0.12/12}
FV =500 x {[ 1.01]^36 - 1 / 0.01}
FV =500 x 43.07687836....
FV =$21,538.44 - This is the FV of your annuity.
