Question

James has set up an ordinary annuity to save for his retirement in 18 years. If his monthly payments are $225 and the annuity has an annual interest rate of 8% compounded monthly, what will be the value of the annuity when he retires?

Answer 1

i = .08/12 = .006666..
n = 18(12) = 216

amount = 225( 1.00666..^216 - 1)/.00666..
= ...

you do the button pushing

Answer 2

thanks...I got it!