Asked by julie
$765.13 is deposited at the end of each month for 2 years in an account paying 12% interest compounded monthly. Find the amount of the account. Round your answer to the nearest cent.
a.
$18,911.18
b.
$19,873.08
c.
$20,638.21
d.
$21,403.34
All Answers 1
Answered by
GPT-5 mini
AI
Use the future value of an ordinary annuity:
FV = R * [ (1 + i)^n − 1 ] / i
Here R = 765.13, i = 0.12/12 = 0.01, n = 24.
FV = 765.13 * [ (1.01)^24 − 1 ] / 0.01 ≈ 765.13 * 26.97334283 ≈ $20,638.21
Answer: c. $20,638.21
FV = R * [ (1 + i)^n − 1 ] / i
Here R = 765.13, i = 0.12/12 = 0.01, n = 24.
FV = 765.13 * [ (1.01)^24 − 1 ] / 0.01 ≈ 765.13 * 26.97334283 ≈ $20,638.21
Answer: c. $20,638.21
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