I am working on annuities and this one annuity is really difficult.  the question is Kristy Joe deposits $160 each month in an ordinary annuity to save for a new car. If the annuity pays a monthly interest rate of 0.66% how much will she be able to save in 5 years? Assume that the compounding is being done monthly. The answer I have come up with are 11,337.04 but the correct answer is apparently 11,731.81. How is this possible?

Question

I am working on annuities and this one annuity is really difficult. 

the question is Kristy Joe deposits $160 each month in an ordinary annuity to save for a new car. If the annuity pays a monthly interest rate of 0.66% how much will she be able to save in 5 years? Assume that the compounding is being done monthly.

The answer I have come up with are 11,337.04 but the correct answer is apparently 11,731.81. How is this possible?

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Math
Advanced Math

Related Advanced Math Q&A

Find answers to questions asked by students like you.