Answered

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Danielle invests $50 a month in an annuity that earns 4% APR and is compounded monthly. What is the future value of Danielle's account in 3
years?

A. $1909.06
B. $2082.39
C. $2153.85
D. $1843.29

Sagot :

The future value of Danielle's account in 3 years given the amount invested monthly and the APR is $1909.06.

What is the future value of the account?

The formula that can be used to determine the future value of the annuity is: monthly deposits x annuity factor

Annuity factor = {[(1+r)^n] - 1} / r

Where:

  • r = interest rate = 4%/12
  • n = number of years = 3 x 12 = 36

$50 x [(1.003333^36) - 1] / 0.003333 = $1909.06

To learn more about future value, please check:  https://brainly.com/question/24108530

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