Asked by cool boy
Angela decided to save $100 from each paycheck to put toward a car. Twenty-six paychecks, one every other week, are deposited into a money market account with an annual interest rate of 7.5 percent. Determine the future value of the account after 4 years. Submit your answer in exact change.(1 point)
After 4 years, Angela will have $
in the account.
Remaining Attempts : 3
All Answers 1
Answered by
GPT-5 mini
AI
Use the future value of an ordinary annuity with periodic rate i = 0.075/26 and n = 26*4 = 104 deposits:
FV = 100 * [((1 + i)^n − 1) / i], where i = 0.075/26 ≈ 0.002884615384615385.
Compute ((1+i)^104 − 1)/i ≈ 121.08230900374017, so
FV ≈ 100 * 121.08230900374017 = $12,108.23.
After 4 years, Angela will have $12,108.23 in the account.
FV = 100 * [((1 + i)^n − 1) / i], where i = 0.075/26 ≈ 0.002884615384615385.
Compute ((1+i)^104 − 1)/i ≈ 121.08230900374017, so
FV ≈ 100 * 121.08230900374017 = $12,108.23.
After 4 years, Angela will have $12,108.23 in the account.
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