Question

If a $100 per month annuity was offering an annual 4.8% interest compounded monthly, how much money would be in the account after two years? Round your answer to the nearest cent, and do not include a dollar sign in your answer.​

Answer 1

Answer:

109.6

Step-by-step explanation:

100+100×(4.8%×2)=100+ 100×9.6%=100+9.6=109.6

Answer 2

Answer:

The money account after two years will be 110.054

Step-by-step explanation:

Compound interest formula

$A = P(1 + \frac{r}{n})^{nt}$

A = final amount = required to know

P = initial principal balance = $100

r = interest rate = 4.8%=4.8/100 because compounded monthly

n = number of times interest applied per time period = 12

t = number of time periods elapsed = 2

$A = P(1 + \frac{4.8}{1200})^{24}$

$A= 100(1+0.004)^{24}$

A=   $110.054$

Thus, The money account after two years will be 110.054

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