Question 1201794
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Answers: 
future balance = <font color=red>$88,220.19</font> 
total deposits = <font color=red>$45,792</font> 



Work Shown:


P = 159 = monthly payment
r = 0.05 = APR in decimal form
i = r/12 = 0.05/12 = 0.00416666666666667 approximately = monthly interest rate in decimal form
n = 24*12 = 288 months


We have these inputs
P = 159
i = 0.00416666666666667 (approximately)
n = 288


Compute the future value of the annuity
Use an ordinary annuity and not annuity due.
FV = P*( (1+i)^n - 1 )/i
FV = 159*( (1+0.00416666666666667)^288 - 1 )/0.00416666666666667
FV = 88220.1931150959
FV = <font color=red>88220.19 dollars</font> will be the account balance after 24 years (aka 288 months)


Let's compare that to what the balance would be if no interest is added.
You deposit $159 per month for 288 months to get 159*288 = <font color=red>45792 dollars</font> of total deposits. 


Subtract the two values marked in red to determine how much more is earned
88220.19 - 45792 = 42428.19
You earn 42,428.19 more dollars if the money is compounded with interest.


Future value annuity calculator
<a href = "https://www.omnicalculator.com/finance/annuity-future-value">https://www.omnicalculator.com/finance/annuity-future-value</a>
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