algebra

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

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  1. 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

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    posted by Damon

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