6) A client opens an Annuity with $200 monthly deposits, at a rate of 4% monthly. a. Determine the total amount after 30 years. b. They decide to take a 20-year Annuity Payout at 4% monthly. How much do they receive each month? c. What was the Total Annuity payout? d. How much interest did they receive?
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To determine the total amount after 30 years, we need to calculate the future value of the annuity. The formula for calculating the future value of an annuity is: FV = P * ((1 + r)^n - 1) / r Where: FV = Future Value P = Monthly deposit amount r = Monthly Show more…
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