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London deposits $320 every month into an account earning a monthly
interest rate of 0.45%. How much would she have in the account after
11 years, to the nearest dollar? Use the following formula to determine
your answer.
-
A=d
a(" --
(1 + i)" – 1
i
A the future value of the account after n periods
d the amount invested at the end of each period
i the interest rate per period
n = the number of periods

Sagot :

Parrainidn

Based on the amount that London deposited every month and the number of years involved, London would have $57,515.16.

How much would London have in 11 years?

The amount that London deposits every month is an annuity because it is a fixed amount.

The value in 11 years is therefore the future value of an annuity which can be found as:

= Amount x ( (1 + rate) ^ number of periods - 1) / rate

The number of periods is:

= 11 years x 12 months

= 132 months

Future value is:
= 320 x ( ( 1 + 0.45%)¹³² - 1) / 0.45%

= $57,515.16

Find out more on annuities at https://brainly.com/question/9293270.

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