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Your business needs to put aside funds to purchase new office equipment in 4 years. You can afford to put aside $250 per month, and you are able to invest in an account offering 3% per year, compounded monthly. How much money will this amount to at the end of this time? $12,732.80 $12,451.67 ООО $27.135.16 $13,014.63

Your business needs to put aside funds to purchase new office equipment in 4 years. You can afford to put aside $250 per month, and you are able to invest in an class=

Answer :

x = 3 %= 3/100 = 0.03/12 = 0.0025

n = 4 years

PMT = 250

FV = future value

[tex]\begin{gathered} FV=PMT\frac{(1+x)^n-1}{x} \\ FV=250\times\frac{(1+0.0025)^{12\times4}-1}{0.0025} \\ FV=\text{ \$}12732.802104 \\ FV=\text{ \$}12732.80 \end{gathered}[/tex]

The answer is A.

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