Recently, More Money 4U offered an annuity that pays 4.8% compounded monthly. If $2,232 is deposited...

Question

Question

Recently, More Money 4U offered an annuity that pays 4.8% compounded monthly. If $2,232 is deposited into this annuity every

Answer 1

Answer #1

Future value of annuity = deposits * [ ( 1+r)^n - 1 ] / r

where r is the periodic interest rate = 4.8/12 = 0.4 %

and n is the no of periods = 4/12 = 48

Future value of annuity = 2232 * [ 1.004^48 -1 ] / 0.004 = 2232 *52.8016 = 117,853

There is 117853 in the account after 4 years.

Amount of Interest = Total amount in the account - annuity * no of payments

= 117853. - 2232 *48 = 10,717

Answer 2

Similar Homework Help Questions

Recently, More Money 4U offered an annuity that pays 4.8% compounded monthly. If $1,000 is deposited...

Recently, More Money 4U offered an annuity that pays 4.8% compounded monthly. If $1,000 is deposited into this annuity every month, how much is in the account after 6 years? How much of this is interest? Type the amount in the account: $____ Type the amount of interest earned: $____ (Please square, label, or circle the answer)
Recently, More Money 4U offered an annuity that pays 4.8% compounded monthly. If $1,453 is deposited...

Recently, More Money 4U offered an annuity that pays 4.8% compounded monthly. If $1,453 is deposited into this annuity every month, how much is in the account after 7 years? How much of this is interest? Type the amount in the account: $____ Type the amount of interest earned: $____ (Please square, label, or circle the answer)
Recently, More Money 4U offered an annuity that pays 5.7% compounded monthly. If $1,942 is deposited...

Recently, More Money 4U offered an annuity that pays 5.7% compounded monthly. If $1,942 is deposited into this annuity every month, how much is in the account after 7 years? How much of this is interest? Type the amount in the account: $ (Round to the nearest dollar.) Type the amount of interest earned: $ Round to the nearest dollar.)

Recently, Money Money 4U offered an annuity that pays 5.4% compounded monthly. If $1,540 is deposited...

Recently, Money Money 4U offered an annuity that pays 5.4% compounded monthly. If $1,540 is deposited into this annuity every month, how much is the account after 10 years? How much of this is interest? Type the amount in the account: $ _______ (Round to the nearest dollar.)
Recently, More Money 4U offered an annuity that pays 5.4 % compounded monthly. If $2,270 is...

Recently, More Money 4U offered an annuity that pays 5.4 % compounded monthly. If $2,270 is deposited into this annuity every month, how much is in the account after 10 years? How much of this is interest? Type the amount in the account: $? Round to the nearest dollar.)
Recently, More Money 40 offered an annuity that pays 4.8% compounded monthly. If $1,753 is deposited...

Recently, More Money 40 offered an annuity that pays 4.8% compounded monthly. If $1,753 is deposited into this annuity every month, how much is in the account after 5 years? How much of this is interest? Type the amount in the account: $1 | (Round to the nearest dollar.)

Recently, More Money 4U offered an annuity that pays 5.7% compounded monthly. If $1,189 is deposited...

Recently, More Money 4U offered an annuity that pays 5.7% compounded monthly. If $1,189 is deposited into this annuity every month, how much is in the account after 9 years? How much of this is interest? Type the amount in the account: $____ Type the amount of interest earned: $____ Please do not round any numbers. (Please square, label, or circle the answer)
Recently, More Money 4U offered an annuity that pays 6.3% compounded monthly. If $1,196 is deposited...

Recently, More Money 4U offered an annuity that pays 6.3% compounded monthly. If $1,196 is deposited into this annuity every month, how much is in the account after 7 years? How much of this is interest? Type the amount in the account: $____ Type the amount of interest earned: $____ (Please square, label, or circle the answer)
Recently, More Money 40 offered an annuity that pays 6.0% compounded monthly. If $1,511 is deposited...

Recently, More Money 40 offered an annuity that pays 6.0% compounded monthly. If $1,511 is deposited into this annuity every month, how much is in the account after 9 years? How much of this is interest? Type the amount in the account: $ 215,680 (Round to the nearest dollar.) Type the amount of interest earned: $ (Round to the nearest dollar.)

Please answer quickly!!! Recently, More Money 4U offered an annuity that pays 5.7% compounded monthly. If...

Please answer quickly!!! Recently, More Money 4U offered an annuity that pays 5.7% compounded monthly. If $1,189 is deposited into this annuity every month, how much is in the account after 9 years? How much of this is interest? Type the amount in the account: $____ Type the amount of interest earned: $____ Please do not round any numbers. (Please square, label, or circle the answer)