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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
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 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.)
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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 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.)

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check_circleAnswer
Step 1

Calculate the future value as follows:

MS-Excel --> Formulas --> Financials --> FV

=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
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=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

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Step 2

Calculate the interes...

Interest Future value -Original value
S56,384.77-(S827 x5 x12)
S56,384.77-$49,620.00
$6,764.77
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Interest Future value -Original value S56,384.77-(S827 x5 x12) S56,384.77-$49,620.00 $6,764.77

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