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Alexa plans on saving $3,000 a year and expects to earn an annual rate of 10.25 percent. how much will she have in her account at the end of 45 years

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Aliwohaish12
Hi there
To find the future value of annuity ordinary the formula is
Fv=pmt [(1+r)^(n)-1)÷r]
Fv future value?
PMT payment per year 3000
R interest rate 0.1025
N time 45 years
So
Fv=3,000×(((1+0.1025)^(45)−1)
÷(0.1025))=2,333,571.66

Good luck!
Parrain

The amount that Alexa will have at the end of 45 years based on the interest rate is $2,333,571.66.

What amount will Alexa have?

The $3,000 a year is constant and so is an annuity.

The future value of this annuity can be found by the formula:

= Amount x Future value of annuity factor, 45 years, 10.25%

= 3,000 x  777.86

= $2,333,571.66

Find out more on annuities at https://brainly.com/question/5303391.

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