Question 1077463: If you deposit $800 per month into a simple annuity, with APR 4.2%. how much do you have at the end of 25 years?
Found 3 solutions by jorel1380, MathTherapy, akch2002:
Answer by jorel1380(3719)   (Show Source):
You can put this solution on YOUR website! The future value of an annuity is given by the formula P=r(FV)/(1+r)^n -1, where P=payment,r=periodic rate of interest,and n is the number of periods. Here,we have payments of 800/month, or 9600/year. The interest rate is 4.2%, and there are 25 periods. So:
9600=.042(FV)/(1.042)^25 -1
FV=410743.60
The expected future value of this annuity is $410743.60. ☺☺☺☺
Answer by MathTherapy(10557)  (Show Source):
You can put this solution on YOUR website!
If you deposit $800 per month into a simple annuity, with APR 4.2%. how much do you have at the end of 25 years?
Depositing $800 per month at an annual interest rate of 4.2%, and compounded monthly, amounts to  at the end of 25 years.
Answer by akch2002(12)  (Show Source):
You can put this solution on YOUR website! This is ordinary annuity problem.
We have
FV = PMT[(1+i)^n-1]/i
Here PMT = 800, i = 4.2%/12 = 4.2/1200, n = 25*12 = 300
Hence, FV = 800[(1+4.2/1200)^300-1]/(4.2/1200)
= 423409.65
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