Jennifer wants to take a trip around the world. She plans to deposit $125 at the beginning of each month into an investment with a 3.75 interest rate, compounded monthly. How much will she have in the account in 8 years?

A. 13, 969.10

B. 14, 012.75

C. 110, 885.27

D. 115, 043.47

The answer to that is 14012.75

The formula of the future value of annuity due is

A=p [ (1+r/k) ^ (kn) - 1) / (r/k) ] * (1+r/k)

A future value of annuity due

P payment 125

R interest rate 0.0375

K compounded monthly 12

N time 8 years

Solve for A

A=125 * (((1+0.0375:12) ^ (12

*8) - 1) : (0.0375:12)) * (1

+0.0375:12)

=14,012.75