Answer:
The money after 3 years is $5819.8735
Step-by-step explanation:
We are given
monthly payment =$75
so, P=75
annuity that earns 48% APR
so, r=48%
Since, it is compounded monthly
so,
[tex]i=\frac{48}{12} =4[/tex]%
i=0.04
[tex]n=12\times 3=36[/tex]
now, we can use annuity formula
[tex]FV=P[\frac{(1+i)^n-1}{i} ][/tex]
where
FV is future value
now, we can plug values
[tex]FV=75[\frac{(1+0.04)^{36}-1}{0.04} ][/tex]
we get
[tex]FV=5819.8735[/tex]
The money after 3 years is $5819.8735
