Suppose you invest $78 a month in an annuity that earns a 2.8% apr, compounded monthly. how much money will you have in this account after 4 years? someone

$87.23.  

Step-by-step explanation:

We are asked to find the amount after 4 years compounded monthly at the rate of 2.8% APR.

We will use compound interest formula to solve our given problem.

, where,

A = Final amount after T years,

P = Principal amount,  

r = Interest rate in decimal form,

n = Number of times interest is compounded per year.

T = Time in years.

Let us convert our given rate in decimal form.

Upon substituting our given values in compound interest formula we will get,

Therefore, we will have $87.23 in the account after 4 years.