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Homework answers / question archive / Find the amount of an annuity of payments of $150 at the end of every month for 3 years at the rate of 49 compounded monthly
Find the amount of an annuity of payments of $150 at the end of every month for 3 years at the rate of 49 compounded monthly. (Round your answer to nearest Dollar) $7,141 $6,487 $5,727 $5,487 $7.727
It is the case of Future value annuity. Therefore future value will be
= A * ((1 + r)n - 1 )/r
= 150 * ((1 + 0.04/12 )3*12 -1) / (0.04/12)
= 150 *38.18156
= $5727
Therefore C is correct answer.
