Alexa plans on saving $3,000 a year and expects to earn an annual rate of 10.25 percent. how much will she have in her account a

Question

viva [34]

2 years ago

11

Alexa plans on saving $3,000 a year and expects to earn an annual rate of 10.25 percent. how much will she have in her account a

t the end of 45 years

Business

1 answer:

Alika [10] · Answer 1 · 2023-04-26T06:14:28+03:00

Alika [10]2 years ago

8 0

Hi there
To find the future value of annuity ordinary the formula is
Fv=pmt [(1+r)^(n)-1)÷r]
Fv future value?
PMT payment per year 3000
R interest rate 0.1025
N time 45 years
So
Fv=3,000×(((1+0.1025)^(45)−1)
÷(0.1025))=2,333,571.66

Good luck!