Question

Suppose you invest $75 a month in an annuity that earns 48% APR compounded monthly. How much money will you have in this account after 3 years?

Answer 1

$5819.8735

Explanation:

Answer 2

The money after 3 years is $5819.8735

Explanation:

We are given

monthly payment =$75

so, P=75

annuity that earns 48% APR

so, r=48%

Since, it is compounded monthly

so,

`i=(48)/(12) =4`%

i=0.04

`n=12* 3=36`

now, we can use annuity formula

`FV=P[((1+i)^n-1)/(i) ]`

where

FV is future value

now, we can plug values

`FV=75[((1+0.04)^(36)-1)/(0.04) ]`

we get

`FV=5819.8735`

The money after 3 years is $5819.8735