Answer:
Final balance = $ 14,272.93
Explanation:
Annual Deposits(PMT) = $1,000
Number of years(N) = 12
Rate of interest (r) = 3.1% = 0.031
Future Value = ?
Computation:
[tex]Future\ Value = PMT[\frac{(1+i)^n-1}{i} ] \\Future\ Value = 1,000[\frac{(1+0.031)^{12}-1}{0.031} ] \\Future\ Value = 1,000[\frac{(1.031)^{12}-1}{0.031} ] \\Future\ Value = 1,000[\frac{1.44246-1}{0.031} ] \\Future\ Value = 1,000[\frac{0.44246}{0.031} ] \\Future\ Value = 1,000[14.2729] \\Future\ Value = 14,272.9252[/tex]
Final balance = $ 14,272.93
