Question #280802

belle Benigna invested 2,500 at the beginning of each month 12% compounded monthly how much would be in the account after 5 years


1
Expert's answer
2021-12-20T03:22:58-0500
FVAnnuity Due=C[(1+r/n)t1r/n](1+r/n)FV_{Annuity\ Due}=C\bigg[\dfrac{(1+r/n)^t-1}{r/n}\bigg](1+r/n)

FVAnnuity DueFV_{Annuity\ Due}

=2500[(1+0.12/12)12(5)10.12/12](1+0.12/12)=2500\bigg[\dfrac{(1+0.12/12)^{12(5)}-1}{0.12/12}\bigg](1+0.12/12)

=206215.92=206215.92

206215.92206215.92 would be in the account after 5 years.


Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!
LATEST TUTORIALS
APPROVED BY CLIENTS