Solve using the formula for the future value of an ordinary annuity.

Starting in January, you make monthly payments at the end of each month into an account paying the specified yearly interest rate. Interest is compounded monthly. How much will you have available at the specified date? Do not round until the final answer. Then, round to the nearest cent.

Monthly payment, $225; yearly interest rate, 10%; date, September 1.

Question

Solve using the formula for the future value of an ordinary annuity. 

Starting in January, you make monthly payments at the end of each month into an account paying the specified yearly interest rate. Interest is compounded monthly. How much will you have available at the specified date? Do not round until the final answer. Then, round to the nearest cent.

Monthly payment, $225; yearly interest rate, 10%; date, September 1.

anonymous · Answer

HELP PLEASE :)

anonymous · Answer

When you plug into the Future Value formula with:
Monthly payment $225;
Monthly interest rate 10%/12
Time 8 months
-> Future Value = $1,853.384