Javier is currently paying $1 comma 200 in interest on his credit cards annually. If, instead of paying interest, he saved this amount every year, how much would he accumulate in a tax-deferred account earning 8 percent over 8 , 13 , or 18 years
Future value of annuity=Annuity[(1+rate)^time period-1]/rate
a.Future value=$1200[(1.08)^8-1]/0.08
=$1200*10.63662763
=$12763.95(Approx).
b.Future value=$1200[(1.08)^13-1]/0.08
=$1200*21.49529658
=$25794.36(Approx).
c.Future value=$1200[(1.08)^18-1]/0.08
=$1200*37.45024374
=$44940.29(Approx).
Javier is currently paying $1 comma 200 in interest on his credit cards annually. If, instead...