Veronica plans to make a $95 a month annuity payment to an account that earns 3% annual interest to build up her savings. How much can she save in 10 years with this plan?

A. $7,122.49

B. $13,275.43

C. $21,846.27

D. $38,960.76..

I think the answer is D but I'm not very good at this stuff... Please help it's URGENT!!!

Roses Mar 20, 2020

#1**+1 **

Hint:

Since Veronica earns 3% or 0.03 annual (per year) interest, the amount she earns in ten years will be (0.03)^10.

We can easily write an equation that shows how much Veronica wants to earn.

Hope this helped!

CalTheGreat Mar 20, 2020

#3**+2 **

For payments made at the BEGINNING OF THE MONTH (payment due annuity)

P=PMT×((1+r)^{n}−1)/r × (1+r)

For payments made at the END OF THE MONTH (ordinary annuity....more common)

P =PMT X ((1+r)^{n} -1)/r I'll use this one

PMT = 95 r = 3%/12months = .0025 % per month n = 10 years * 12 months/year = 120 months

P = 95 ( ( 1+.0025)^{120} -1 ) / .0025 = $ 13 275.43

ElectricPavlov Mar 20, 2020