Mathematics: Find the value of the annuity and the interest. Round to the nearest dollar. Periodic Deposit: $50 at the end of every month Rate: 4.25% compounded monthly Time: 9 years

Best Answer : you would have to divide 35 with the place value it is in. For example : 35% ; 35/100 and then you divide which is 0.35, that is your answer. As a fraction 0.35 is really 7/20.Step-by-step explanation:...

Find the value of the annuity and the interest.

Ответ:

KvngLij

22.01.2022

Mathematics

Therefore the value annuity is $6,564.06.

The interest is $1,164.06.

Step-by-step explanation:

The compound monthly interest formula

$S=P\frac{(1+\frac rn)^{nt}-1}{\frac{r}{n}}$

Here

S= The future value.

P= Periodic investment= $50

r= rate of interest= 4.25%= 0.0425

t = time in year= 9 year.

n= 12 [ Since compounded monthly]

Putting the all values

$S=50\times \frac{(1+\frac{0.0425}{12})^{12\times 9}-1}{\frac{0.0425}{12}}$

$=50\times \frac{(1.0035)^{108}-1}{\frac{0.0425}{12}}$

=$6,564.06 (approx)

Therefore the value annuity is $6,564.06.

The periodic deposit $50 at the end of every month for 9 year.

9 year= (12×9) months

Total deposit =$ (50×12×9)

=$5,400

Interest = Future value - Total deposit

=$(6,564.06-5,400)

=$1,164.06

The interest is $1,164.06.

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Find the value of the annuity and the interest. Round to the nearest dollar. Periodic Deposit: $50 at the end of every month Rate: 4.25% compounded monthly Time: 9 years

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