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?

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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) About Me  (Show Source):
You can put this solution on YOUR website!
FV+=+P%2A%28%28%281%2Br%29%5En-1%29%2Fr%29

where FV is the future value of the account
+P is your monthly payment
r+is the annual percentage rate presented as a decimal
n+is the number of deposits (= the number of years multiplied by 12, in this case)

Under the given conditions, P+=+425; r+=+0.06%2F12=0.005; +n+=+10%2A12=120.

So, according to the formula above, you get at the end of the 10th year

FV+=+425%2A%28%28%281%2B0.005%29%5E120-1%29%2F0.005%29
FV+=69648.72