Answer :
According to the given statement the interest that we earn is
= $74,059 . 64
What Is an Annuity's Present Value?
The present value of an annuity seems to be the current worth of future annuity payments based on a predetermined rate of return, as well as discount rate. The higher the discount rate, the smaller the annuity's present value.
According to the given data:
monthly payment is 150
at the age = 30
interest rate = 4
till age of = 65
At age 65, the annuity would be worth $137,059.64.
We only need to determine the amount of interest. = ?
for monthly payments, we need to take n, which equals 12 points now total interest. determined by future value. Substitute minus p m t multiplied by n multiplied by t for all values now.
the amount of interest = deposited amount x year x no of year invested
= 150 x 12x(65-30)
present value = 63000
At age 65, the annuity would be worth $137,059.64.
We know that the interest is = balance - capital
= 137,059.64 - 63000
= $74,059 . 64
According to the given statement the interest that we earn is
= $74,059 . 64
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