You put $50 in your savings account at the end of each month.

You put $50 in your savings account at the end of each month. The nominal interest rate is 14% annual nominal compounded monthly, and you have at the end $2,221.14. what its your annuity value?

Solutions

Expert Solution

To draw the cash flow diagram, we must know the number of periods that we have to put $50 in the savings account. The number of periods is found using the following equation

Solving for n in the above equation

Number of months = 36

The cash flow diagram is drawn using excel. In excel, go to insert, charts and select column

ekkarill92 answered 1 year ago

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