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suppose an annuity pays 12% annual interest, compounded monthly. to save for retirement, you invest in this annuity, contributing $450 every month for 10 years. what is the balance in this account after 10 years? enter your answer rounded to the nearest hundred dollars and omit the dollar sign and comma. (for example $12,970.21 should be entered as 13000).

Answer :

contexto1019

The value of annuity at the end of 10 years is $ 4225.094167

Use a formula to determine the annuity in case of periodically deposit as

Annuity factor = {[(1+r)^n] - 1} / r

Where P is periodic deposit amount interests,

r rate annually is the number of times compounded annually and

t is time in a year.

We have been given that investment in an annuity that pays 12% interest, compounded annually. You contribute $4,50 each year for 10 years

Here,

P = $450, r = 12% = 0.012,

t =10 years

Annuity factor = [(1 + 0.012)^10-1] / 0.012

Annuity factor = 4225.094167

The value of annuity at the end of 10 years is $ 4225.094167

To know more about annuity, refer:

brainly.com/question/13247656

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