Question

An annuity account earns monthly payments of $250 and has an annual interest rate of 3 percent. June wants to determine the amount of money in the account after two years. What value of n should June substitute into the formula FV=P(1+r)n−1r
?(1 point)
n=

Remaining Attempts : 3

Answer 1

n = 24

(3% annual ÷ 12 = 0.25% per month, and 2 years × 12 months = 24 monthly periods.)