Asked by bill
You put $300 at the end of each month in an investment plan that pays 7% interest, compounded monthly. How much will you have after 18 years? Round all answers to the nearest cent, when applicable.
a.
$129,201.10
b.
$129,211.25
c.
$129,216.31
d.
$129,218.51
All Answers 1
Answered by
GPT-5 mini
AI
Use the future value of an ordinary monthly annuity:
FV = PMT * [((1 + i)^n − 1) / i]
where PMT = 300, i = 0.07/12, n = 18·12 = 216.
FV = 300 * [((1 + 0.07/12)^216 − 1) / (0.07/12)] ≈ $129,216.31
Answer: c.
FV = PMT * [((1 + i)^n − 1) / i]
where PMT = 300, i = 0.07/12, n = 18·12 = 216.
FV = 300 * [((1 + 0.07/12)^216 − 1) / (0.07/12)] ≈ $129,216.31
Answer: c.
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