Kristy Joe deposits 130 each month in an ordinary annuity to

Kristy Joe deposits ?$130 each month in an ordinary annuity to save for a new car. If the annuity pays a monthly interest rate of 0.84 %, how much will she be able to save in 5 years? Assume that the compounding is being done monthly.

Solution

PV = 0, PMT = 130, rate = 0.84%, N = 60

use FV function in Excel

amount saved in five years = 10,088.13