Final answer:
To find the value of the annuity after 19 years with monthly payments of $320 and an APR of 2.6% compounded monthly, use the formula for the future value of an ordinary annuity. Plug in the values and calculate the future value to be approximately $102,459.68.
Step-by-step explanation:
To find the value of the annuity after 19 years, we can use the formula for the future value of an ordinary annuity:
FV = P × [(1 + r)^n - 1] / r
Where FV is the future value of the annuity, P is the monthly payment, r is the monthly interest rate, and n is the number of payments.
In this case, the monthly payment is $320, the APR is 2.6% compounded monthly (which is equivalent to a monthly interest rate of 2.6% / 12 = 0.2167%), and the number of payments is 19 years × 12 = 228 months.
Plugging in these values, we get:
FV = $320 × [(1 + 0.002167)^228 - 1] / 0.002167
= $102,459.68.
Calculating this, the value of the annuity after 19 years is approximately $102,459.68. (Rounded to two decimal places)