Solve the Problem. Round to the Nearest Cent

question 13

Multiple Choice

Solve the problem. Round to the nearest cent.
-James has set up an ordinary annuity to save for his retirement in 19 years. If his monthly Payments are $200 and the annuity has an annual interest rate of 7.5% compounded monthly, What will be the value of the annuity when he retires?

• A) $104,462.72
• B) $100,462.72
• C) $75,347.04
• D) $86,397.94

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