Question

What is the total amount in an account that has had $45 per month added into it for 30 years and grew with an annual interest rate of 8%?

Answer 1

The Future Value of an Annuity is given by:FV = P [(1 + r)^n -1 / r] where the periodic payment P = $45
N = number of period = 360. And r = rate per period = (0.08/12) = 0.0066667
So we have 45[((1 + 0.0066667)^(360) - 1)/ 0.0066667] = $16, 405. 27