eriodic 20 at the end of each month compounded monthly a Af

eriodic 20 at the end of each month % compounded monthly a. After 25 years, you will have approximately (Do not round until the final answer. Then round to the nearest dollar as needed) b. The interest is approximately (Use the answer from part a to find this answer. Round to the nearest dollar as needed.) ears a. Use the following formula to find the value of the annuity b. Find the interest.

Solution

a) After 25 years the amount will be 20*((1+0.06/12)^300-1))/(0.06/12) = $              13,860 b) Interest = 13860-20*300 = $                 7,860