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To calculate the future value of the annuity to the nearest cent, substitute the known values of i = 0.03 12 n = 240, and PMT = 120 into the formula and proceed to simplify. (Round your final answer to the nearest cent.) FV = PMT| (1 + i)" – 1 0.03 240 - 1 1 + 12 FV = 0.03 12 Thus, the future value of the monthly deposits of $120 at an annual rate of 3% for 20 years is $

To calculate the future value of the annuity to the nearest cent, substitute the known values of i = 0.03 12 n = 240, and PMT = 120 into the formula and proceed to simplify. (Round your final answer to the nearest cent.) FV = PMT| (1 + i)" – 1 0.03 240 - 1 1 + 12 FV = 0.03 12 Thus, the future value of the monthly deposits of $120 at an annual rate of 3% for 20 years is $

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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0.03 To calculate the future value of the annuity to the nearest cent, substitute the known values of i = 12 n = 240, and PMT = 120 into the formula and proceed to simplify. (Round your final answer to the nearest cent.) (1 + i)" - 1 FV = PMT| 0.03 240 1 + 12 FV = 0.03 12 Thus, the future value of the monthly deposits of $120 at an annual rate of 3% for 20 years is 2$
Transcribed Image Text:0.03 To calculate the future value of the annuity to the nearest cent, substitute the known values of i = 12 n = 240, and PMT = 120 into the formula and proceed to simplify. (Round your final answer to the nearest cent.) (1 + i)" - 1 FV = PMT| 0.03 240 1 + 12 FV = 0.03 12 Thus, the future value of the monthly deposits of $120 at an annual rate of 3% for 20 years is 2$
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