You put $350 per month in an investment plan that pays an APR of 3.5% compounded monthly. How much will you have after 18 years? Compare this amount to the total deposits made over the time period. Assume an ordinary annuity.

For an ordinary annuity, use the monthly rate and number of monthly deposits: i = 0.035/12 and n = 18 × 12 = 216. The future value is 350 × [(1 + i)^216 − 1]/i, which is about $105,106.76. Total deposits are 350 × 216 = $75,600, so choice B, “$105,106.76; $75,600,” is correct.

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