Solve the Problem $$A = \frac { P \left[ \left( 1 + \frac { r } { n } \right) ^ { n t } - 1 \right] } { \frac { r } { n } } .$$

question 133

Multiple Choice

Solve the problem.
-Suppose that P dollars is invested at the end of each compounding period n times per year at interest rate r. Then the value A (in $) of the annuity after t years is given by $$A = \frac { P \left[ \left( 1 + \frac { r } { n } \right) ^ { n t } - 1 \right] } { \frac { r } { n } } .$$ An employee invests $150 per month in an ordinary annuity. If the interest rate is 4%, find the value
Of the annuity after 25 yr.

• A) $97,695.55
• B) $76,121.46
• C) $97,858.15
• D) $77,119.43

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