Answer:
$24135.72
Explanation:
Given pmt 320, r 9% n 5 years
This amount is paid monthly s\and there are 12 months in a year
r = 9%/12 =0.75%
n = 5* 12 =60
We will use the future value of annuity
FV = pmt *[(1+r)^n - 1/r)]
= 320 *[(1+0.0075)^60-1/0.0075
=$24135.72
Answer: $24,135.73
Explanation:
GIVEN the following ;
Payment per month(PMT) = $320
Rate(r) = 9% 0.09÷12 = 0.0075
Period(n) = 5 years = 60 months
Future Value (FV)
Future Value(FV) :
FV = PMT ×[ [ ((1 + r)^n) - 1] ÷ r]
FV = $320 ×[ [ ((1 + 0.0075)^60) - 1] ÷ 0.0075]
FV = $320 ×[ [ (1.0075^60) - 1] ÷ 0.0075]
FV = $320 × [( 0.5656810269415) ÷
0.0075]
FV = $320 × 75.424142588666
FV = $24,135.725628373
FV = $24,135.73
