Recently, More Money 4U offered an annuity that pays 6.6% compounded monthly. If $948 is deposited into this annuity every month, how much is in the account after 9 years? How much of this is interest? Type the amount in the account: $ (Round to the nearest dollar.)
Recently, More Money 4U offered an annuity that pays 6.6% compounded monthly. If $948 is deposited into this annuity every month, how much is in the account after 9 years? How much of this is interest? Type the amount in the account: $ (Round to the nearest dollar.)
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Transcribed Image Text:### Exploring Annuities: Understanding Compound Interest
**Annuity Scenario:**
Recently, More Money 4U offered an annuity that pays 6.6% compounded monthly. If $948 is deposited into this annuity every month, how much is in the account after 9 years? How much of this is interest?
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**Determining the Total Value of the Annuity:**
Type the amount in the account:
- $\_\_\_\_$ (Round to the nearest dollar.)
This example helps you understand how to calculate the future value of regular monthly deposits into an annuity account where interest is compounded monthly. The goal is to determine both the total amount in the account at the end of 9 years and the portion of that amount which comes from interest earned.
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