Question

Future value of ordinary annuity

beatrice deposits 4,500 at a month end at the end at an interest rate 12% compounded monthly

how will she have in her account at the end of two years and four months?

Answer 1

$FVa = \frac{4,500×((1 + 0.12/12)^{28} - 1)} {0.12/12} = 144,580.94.$