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?

Answer 1

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