Question

You place $100 per month into an account that earns 12% per year compounded monthly. Which of the following expressions can be used to calculate the account's value after 3 years? O F=$100(F/A, 1%, 36) O F=$100(F/A, 12%, 3) O P=$100(P/A, 12%, 3) O F=$100(P/A,12%,3)(F/P,12%,3)

Answer 1

Answerte Amount to be deposited per month: A = E100, monthly rate = R= 14, No of months = N= 36 future value of an amount deposited per- - Month can be found by following steps: y finding the person value of amount deposited - per month general experssion for present rolue of an annuity is given by : P=A (PIA, R, N) - we get present value of amount . deposited per month =P = 100 [Pla, 18-86] (2) Now we will find the future value of Present value of amount deposited per month. - general Expression for future value of a dompsom amount is given by fa P(FIPRN) groen by Scanned with CamScanner

= y we get fotore value of amount deposited per month &f=fff (8. 11:36] Now Substituting the value of Pi we get future value of amount deposite per month f: 100 Cela 14-36) Ef 41436) lence Answer: @) f = 100CPIA 111-36) Cfl P1 1.36) Scanned with CamScanner