Question 1117585: Suppose you invest $75 a month in an annuity that earns 48% APR compounded monthly. How much money will you have in this account after 3 years?
Answer by solver91311(24713)   (Show Source):
You can put this solution on YOUR website!
Future Value of an Annuity
^n\ -\ 1}{i}\])
Where  is the future value of the annuity,  is the periodic payment,  is the interest rate per period as a decimal, and  is the number of periods. Since you are making monthly payments, there are 36 months in 3 years so  , 48% is an annual interest rate, so the rate per period is  , which as a decimal is  , Hence:
^{36}\ -\ 1}{0.04}\])
The rest is just arithmetic.
John
My calculator said it, I believe it, that settles it
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