Question 18 • 26-27 Ignite Financial Literacy Personal Finance - EL3403
Because the $300 deposits are made at the end of each month, use the future value formula for an ordinary annuity: $300 × [((1 + 0.07/12)^216 − 1)/(0.07/12)]. There are 18 × 12 = 216 deposits, and the monthly interest rate is 0.07/12. The result is $129,216.31, so the correct choice is $129,216.31.
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