Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
Related questions
Question
Find the saving balance after 25 years with APR 3.5% and monthly payments of $400
![### Annuity Future Value Formula
To calculate the future value of an annuity, use the following formula:
\[
A = PMT \times \left(\frac{\left(1 + \frac{APR}{n}\right)^{ny} - 1}{\frac{APR}{n}}\right)
\]
#### Variables:
- **A**: Future value of the annuity
- **PMT**: Periodic payment amount
- **APR**: Annual interest rate (as a decimal)
- **n**: Number of compounding periods per year
- **y**: Number of years
#### Explanation:
This formula is used to determine how much money you will have in the future after making regular payments at a fixed interval, assuming a certain annual percentage rate and compounding frequency. It factors in the compounded interest over time and reflects growth from both the individual contributions and accumulated interest.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7b42ac91-da2e-4193-b097-1d402559fad5%2F346362ac-a91e-40e0-99e1-e1a6c9c2b46e%2Fq7w15t8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:### Annuity Future Value Formula
To calculate the future value of an annuity, use the following formula:
\[
A = PMT \times \left(\frac{\left(1 + \frac{APR}{n}\right)^{ny} - 1}{\frac{APR}{n}}\right)
\]
#### Variables:
- **A**: Future value of the annuity
- **PMT**: Periodic payment amount
- **APR**: Annual interest rate (as a decimal)
- **n**: Number of compounding periods per year
- **y**: Number of years
#### Explanation:
This formula is used to determine how much money you will have in the future after making regular payments at a fixed interval, assuming a certain annual percentage rate and compounding frequency. It factors in the compounded interest over time and reflects growth from both the individual contributions and accumulated interest.
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