More Money 4U offered an annuity that pays 6.6% compounded monthly. If $1,529 is deposited into this annuity every​ month, how much is in the account after 12 ​years? How much of this is​ interest?

Question

​Recently, More Money 4U offered an annuity that pays 6.6% compounded monthly. If $1,529 is deposited into this annuity every​ month, how much is in the account after 12 ​years? How much of this is​ interest?

Type the amount in the​ account: ​$ __________

Answer 1

i = 0.066/12 = 0.005. FV = PMT((1 +i)^nt - 1)/i = 1529((1 + 0.0055)^12·12 - 1)/0.0055 = 334440.05;

Interes I = FV - PMT·N = 334440.05 - 1529·12·12 = 114264.05