Final answer:
The value of the annuity is approximately $8,187.82.
Step-by-step explanation:
To find the value of an annuity of $100 paid monthly for 6 years with a compounded monthly interest rate of 6%, we can use the formula for the future value of an annuity:
V = P * (((1 + r)^n) - 1) / r
Where:
- V is the future value of the annuity
- P is the monthly payment
- r is the monthly interest rate
- n is the number of payments
Plugging in the values, we get:
V = 100 * (((1 + 0.06)^((6*12))) - 1) / 0.06
Simplifying the equation, we find that the value of the annuity is approximately $8,187.82.