You put $300 at the end of each month in an investment plan that pays 7% interest, compounded monthly. how much will you have after 18 years? round all answers to the nearest cent, when applicable.

Answer: $129,216.22

Explanation:

Given the following;

Annuity (A) = $300

Annual rate = 7% = 0.07

Monthly rate = 0.07:12 = 0.0058333

Period (n) = 18 years = 216 months

FVA = How much the annuity (A) invested each month will be worth at a monthly rate of 0.0058333 after 18 years.

FVA = A * [ (1 + r) ^n - 1] : r

FVA = 300*[ (1+0.0058333) ^216

- 1]:0.0058333

FVA = 300 * [1.0058333^216 - 1] : 0.0058333

FVA = (300 * 2.512514178331248) : 0.0058333

FVA = 753.757 : 0.0058333

FVA = $129,216.22