James deposits $291.49 each month into a

Question

James deposits $291.49 each month into an annuity account for his child's college fund in order to accumulate a future value of $70,000 in 15 years. How much of the
$70,000 will James ultimately deposit in the account, and how much is interest earned? Round your answers to the nearest cent, if necessary.
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Amount James will deposit: $
Interest earned: $

Kunduz · Accepted Answer

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James deposits & 291.49 each month
in 15 years
1 month depoxition = $ 291.49
15 years deposition $ (291.49 x 15X12)
Present value = $ 52,468.2
Future Value = $ 70,000
tune = 15 years
for annuity account
A= P(i+nt)
rt
70,000 = 291.49X15X12 ( 1+ rx 15)
r = 0.0 222
r = 2:22%
2
I
A-P = 70,000- 52,468.2.
17,531.8
Amount James will deposit : $ 52,468.20
Interest earned
$ 17,531-80