Use a calculator to evaluate an ordinary annuity formula

A = m
1 +
r
n
nt

− 1
r
n
for m, r, and t (respectively). Assume monthly payments. (Round your answer to the nearest cent.)
$150; 5%; 40 yr

r = .05/12 = .004167 interest per payment

1+r = 1.004167
n = 12*40 = 480 number of payments

amount = 150 [ 1.004167^480 -1 ]/.004167

= 150 [7.3584 - 1 ]/.004167

= $ 228,884.71

To use a calculator to evaluate the ordinary annuity formula, follow these steps:

Step 1: Convert the interest rate from a percentage to decimal form.
In this case, the interest rate is 5%. To convert it to decimal form, divide by 100: 5% / 100 = 0.05.

Step 2: Convert the number of years to the number of months.
Since the formula assumes monthly payments, you need to convert the 40 years to months. Multiply the number of years by 12: 40 * 12 = 480 months.

Step 3: Substitute the values into the formula.
The ordinary annuity formula is:
A = m * (1 + r/n)^(n*t) - 1 / (r/n),

where:
A = future value of the annuity
m = monthly payment
r = interest rate per period (as a decimal)
n = number of compounding periods per year
t = number of years

In this case, you have:
m = $150,
r = 0.05,
n = 12,
t = 40.

So, the formula becomes:
A = $150 * (1 + 0.05/12)^(12*40) - 1 / (0.05/12).

Step 4: Use a calculator to evaluate the formula.
To calculate this expression, use the exponentiation and division functions on your calculator in the correct order.

Using a calculator, plug in the values and evaluate the expression. Round your answer to the nearest cent.

The result will give you the future value of the annuity in dollars.

Note: Since the calculation involves multiple steps and variables, using an online calculator might be easier and faster.