+24 Annuity is 5.4% compounded monthly with initial deposit of $1,345 how much after 5 years
FV=1,345
+118723 Hi Carol,
Annuity is 5.4% compounded monthly with initial deposit of $1,345 how much after 5 years
Neither your question nor your answer makes much sense!
If it is an annuity then it is an amount paid to you each time period. Or an amount that you pay out each time period. But if you want to know how much will be there after 5 years then you have to know how long the $1345 would last before it runs out.
$1345 is a very small amount for an annuity. Are you sure that this is not just a compound interest question?
Please check your question. The more I look at it the more confused I get. I simply does not make sense.
Actually the question that you have tried to answer is what will be the future value if $1345 is deposited at the beginning of every month. Was this the question?
Below is the answer for:
how much will $1345 grow to if it is invested at 5.4% compounded monthly.
$${\mathtt{1\,345}}{\mathtt{\,\times\,}}{\left({\mathtt{1}}{\mathtt{\,\small\textbf+\,}}{\mathtt{0.004\: \!5}}\right)}^{{\mathtt{60}}} = {\mathtt{1\,760.835\: \!354\: \!040\: \!344\: \!192\: \!8}}$$
+24 Melody that is why I am confused I am coming up with the same answer as you, Think i will question Prof on that on
+118723 Hi again Carol,
You certainly should not be getting the same answer as me because you were answering a different question.
------------------------
This is what you were trying to answer.
$1345 is deposited every month for 5 years at 5.4% compounded monthly. how much does it grow to.
FV=1,345 {(1 + 0.0045)^60 - 1} ÷ 0.0045
$${\frac{{\mathtt{1\,345}}{\mathtt{\,\times\,}}\left({\left({\mathtt{1.004\: \!5}}\right)}^{{\mathtt{60}}}{\mathtt{\,-\,}}{\mathtt{1}}\right)}{{\mathtt{0.004\: \!5}}}} = {\mathtt{92\,407.856\: \!453\: \!409\: \!820\: \!623\: \!8}}$$
This is the question that you have answered.
--------------------------
LIKE i HAVE ALREADY SAID, THE QUESTION IS INCOMPLETE - IT DOES NOT MAKE SENSE!
