Question

If you invest $100 per year for 12 years at an interest rate of 6%, how much money will be in the account in the future?

Answer 1

$1,686.99

Step-by-step explanation:

The future value of an annuity is determined by the following expression:

`FV = A*[((1+r)^n-1)/(r)]`

For an annual investment (A) of $100 for a period (n) of 12 years at an interest rate (r) of 6%, the future value (FV) is:

`FV = 100*[((1+0.06)^(12)-1)/(0.06)]\\FV=\$1,686.99`

After 12 years, there will be $1,686.99 in the account.