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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) = ...

Solution provided by:
Gaurav Agarwal, MS
Education
  • BE, Bangalore University, India
  • MS, University of Wisconsin-Madison
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