​Recently, More Money 4U offered an annuity that pays 5.7 % compounded monthly. If $1,011 is deposited into this annuity every​ month, how much is in the account after 6​years? (Round to the nearest dollar) Part 2 of the question: How much of this is​ interest? (Round to the nearest dollar)

Respuesta :

Part 1
The formula of the future value of annuity ordinary is
Fv=pmt [(1+r/k)^(kn)-1)÷(r/k)]
Fv future value?
PMT monthly payment 1011
r interest rate 0.057
K compounded monthly 12
N time 6years
Fv=1,011×(((1+0.057÷12)^(12
×6)−1)÷(0.057÷12))
=86,546.05

Part 2
First find how many months in 6years
12×6=72 months

Interest=Fv-pmt×number of months
Interest=86,546.05−1,011×72
Interest=13,754.05