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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.

 
Guest Apr 20, 2017
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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.

 
Guest Apr 20, 2017

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