Question

Find the future value of an annuity with monthly deposits of $150, made over a period of 10 years, with 5% interest compounded monthly g

Answer 1

Step-by-step explanation:

Future value of an annuity FVA = ?

annuity = 150 .

period = 10 years

= 10 x 12 = 120 months

rate of interest 5%

monthly interest = 5 / 12 = .41667

FVA = 150 [ ( 1.0041667)¹²⁰] / .0041667

X = 150 [ ( 1.0041667)¹²⁰] / .0041667

2.778 x 10⁻⁵ X = ( 1.0041667)¹²⁰

- 5 + log 2.778 + log X = 120 log 1.0041667

- 4.55627 + log X = .2167

log X = 4.77297

X = $59288.43 .