  Recently, More Money 4U offered an annuity that pays 5.1% compounded monthly. If \$827 is deposited into this annuity every month, how much is in the account after5 years? How much of this is interest?Type the amount in the account: \$(Round to the nearest dollar.)Type the amount of interest earned: \$(Round to the nearest dollar.)

Question help_outlineImage TranscriptioncloseRecently, More Money 4U offered an annuity that pays 5.1% compounded monthly. If \$827 is deposited into this annuity every month, how much is in the account after 5 years? How much of this is interest? Type the amount in the account: \$ (Round to the nearest dollar.) Type the amount of interest earned: \$ (Round to the nearest dollar.) fullscreen
Step 1

Calculate the future value as follows:

MS-Excel --> Formulas --> Financials --> FV help_outlineImage Transcriptionclose=FV(5.1%/12,5*12,-827) Function Arguments X FV Rate 0.00425 5.1%/12 = Nper 5*12 =60 Pmt -827 -827 = Pv =number Туре =number 56384.76568 Returns the future value of an investment based on periodic, constant payments and a constant interest rate. Pv is the present value, or the lump-sum amount that a series of future payments is worth now. If omitted, Pv 0 Formula result \$56,384.77 Cancel OK Help on this function fullscreen
Step 2

Calculate the interes... help_outlineImage TranscriptioncloseInterest Future value -Original value S56,384.77-(S827 x5 x12) S56,384.77-\$49,620.00 \$6,764.77 fullscreen

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