The accumulated amount after eight years of monthly payments of r1 900 each into an account earning 9,7% interest per year, compounded monthly, is?

Question: The accumulated amount after eight years of monthly payments of r1 900 each into an account earning 9,7% interest per year, compounded monthly, is?

To calculate the accumulated amount after eight years with monthly payments of R1,900 at an annual interest rate of 9.7%, compounded monthly, one would use the future value of an annuity formula. The formula is \( FV = P \times \frac{(1 + r)^n - 1}{r} \), where \( P \) is the monthly payment, \( r \) is the monthly interest rate, and \( n \) is the total number of payments. In this case, \( r \) would be \( \frac{9.7\%}{12} \) and \( n \) would be \( 8 \times 12 \). By plugging in the values, the future value can be calculated, which will give the total amount accumulated in the account after eight years. It's important to note that this formula assumes that the payments are made at the end of each period. For precise calculations, it's recommended to use a financial calculator or spreadsheet software that can handle such financial functions.

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