Compound Interest and value of Annuity
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PERIODIC DEPOSIT $80 at the end of the month
RATE 7.5% compounded monthly
Time 40 years
find the value of annuity.
b. after 40 years you will have approximately$ ?
The interest is approximately $ ?
Find the interest ?
the formula required to use is A=P{(1+r)t-1
________________
r
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Solution Summary
The solution provides a step-by-step explanation on how to find the value of annuity and the interest.
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Future Value of Annuity = A/R [ (1+R)^T -1]
R = 7.5%/12 (since it is compounded monthly) = ...
Education
- BE, Bangalore University, India
- MS, University of Wisconsin-Madison
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