Question

Suppose Skyler invests in an annuity that pays 3.2% annual interest, compounded monthly. If she contributes $155 every month for 10 years, how much interest would she earn during that time? Round your answer to the nearest cent. Do NOT round until you have calculated the final answer.

Answer 1

$3286.47

Explanation:

155((1+0.032/12)^12*10

0.032/12

P_10 = 21886.46638739

155 * 12 * 10 = 18600

21886.46638739 = 18600 + I_10

I_10 = 3286.46638739

round answer to nearest cent

$3286.47