Asked by jani
angelina is putting 200 each month in an ordinary annuity that pays an annual interest rate of 9%. if she makes payments for 2 years, how much will she have saved for her trip?
Answers
Answered by
Henry
P = Po(1+r)^n.
Po = 200
r = (9%/12)/100% = 0075/mo.
n = 1comp./mo. * 24mo = 24 Compounding periods.
P = 200(1.0075)^24 = $239.28
Po = 200
r = (9%/12)/100% = 0075/mo.
n = 1comp./mo. * 24mo = 24 Compounding periods.
P = 200(1.0075)^24 = $239.28