Question: A student begin saving for college by making regular monthly payments of $200 into an account that earns 5% per annually interest compounded monthly a)

A student begin saving for college by making regular monthly payments of $200 into an account that earns 5% per annually interest compounded monthly


a) determine the value of the annuity after four years


b) determine the amount of additional interest earned using $200 monthly payments with an interest rate of 8% per annum instead of 5%

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