r = .05/12 = .004167 interest per payment
1+r = 1.004167
n = 12*40 = 480 number of payments
amount = 150 [ 1.004167^480 -1 ]/.004167
= 150 [7.3584 - 1 ]/.004167
= $ 228,884.71
Use a calculator to evaluate an ordinary annuity formula
A = m
1 +
r
n
nt
− 1
r
n
for m, r, and t (respectively). Assume monthly payments. (Round your answer to the nearest cent.)
$150; 5%; 40 yr
1 answer
1 answer