You will have $6327.59 in this account after 3 years ⇒ C
Step-by-step explanation:
The annuity formula of the future value is [tex]FV=C[\frac{(1+\frac{r}{n})^{nt}-1}{\frac{r}{n}}][/tex] where
- FV is the future value of the investment/loan
- C is cash flow per period
- r is the annual interest rate (decimal)
- n is the number of times that interest is compounded per unit t
- t is the time the money is invested or borrowed for
∵ You invest $100 a month in an annuity that earns 36% APR
compounded monthly
∴ C = 100
∴ r = 36% = 36 ÷ 100 = 0.36
∴ n = 12
∵ The time of investment is 3 years
∴ t = 3
- Substitute all these values in the formula above
∵ [tex]FV=100[\frac{(1+\frac{0.36}{12})^{(12)(3)}-1}{\frac{0.36}{12}}][/tex]
∴ [tex]FV=100[\frac{(1+0.03)^{36}-1}{0.03}][/tex]
∴ [tex]FV=100[\frac{(1.03)^{36}-1}{0.03}][/tex]
∴ FV = 6327.59
You will have $6327.59 in this account after 3 years
Learn more:
You can learn more about compounded interest in brainly.com/question/4361464
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