suppose you invest $100 a month in an annuity that
earns 4% apr compounded monthly. how much money
will you have in this account after 2 years?
a. $2400.18
b. $2518.59
c. $1004.48
d. $3908.26

  $2502.60

Step-by-step explanation:

The formula for the amount of an annuity due is ...

  A = P(1 +r/n)((1 +r/n)^(nt) -1)/(r/n)

where P is the monthly payment (100), r is the annual interest rate (.04), n is the number of compoundings per year (12), and t is the number of years (2). Given these numbers, the formula evaluates to ...

  A = $100(1.00333333)(1.00333333^24 -1)/0.00333333

  = $100(301)(0.08314296)

  = $2502.60

This value is confirmed by a financial calculator. The given answer choices all appear to be incorrect. The closest one corresponds to an annual interest rate (APR) of 4.286%, not 4%.

hi,

3. 12.15, you are correct.

4.2.01, your first digit is correct,

hope this !

answer: 20

step-by-step explanation: