SOLUTION: Assume that you make monthly payments of $425 into an ordinary annuity paying 6% compounded monthly. His much will be in the account after 10 years?

Question 1198970: Assume that you make monthly payments of $425 into an ordinary annuity paying 6% compounded monthly. His much will be in the account after 10 years?
Answer by MathLover1(20850) (Show Source): You can put this solution on YOUR website!

where is the future value of the account
is your monthly payment
is the annual percentage rate presented as a decimal
is the number of deposits (= the number of years multiplied by , in this case)

Under the given conditions, ; ; .

So, according to the formula above, you get at the end of the year

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