SOLUTION: Suppose you invest $50 a month in an annuity that earns 48% APR compounded monthly. How much money will you have in this account after 2 years?

SOLUTION: Suppose you invest $50 a month in an annuity that earns 48% APR compounded monthly. How much money will you have in this account after 2 years?

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Question 1115102: Suppose you invest $50 a month in an annuity that earns 48% APR compounded monthly. How much money will you have in this account after 2 years?
Answer by addingup(3677) (Show Source): You can put this solution on YOUR website!
Assuming she deposits the $50 at the end of the month:
Future Value = 50{[[(1+(0.48/12))^(12*2)]-1]/(0.48/12)}
= 50{[(1.04^24)-1]/0.04}
= 50((2.563-1)/0.04)
= 50(39.075)
= 1,953.75
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