Answer
A sequence of equal payments made at equal time periods is called a/an $annuity.$ Its value, A, after t years is given by the formula,
$A = \frac{P[(1+\frac{r}{n})^{nt}-1]}{\frac{r}{n}}$
where $P$ is the deposit made at the end of each compounding period at $r$ percent annual interest compounded $n$ times per year.
Work Step by Step
A sequence of equal payments made at equal time periods is called a/an $annuity.$ Its value, A, after t years is given by the formula,
$A = \frac{P[(1+\frac{r}{n})^{nt}-1]}{\frac{r}{n}}$
where $P$ is the deposit made at the end of each compounding period at $r$ percent annual interest compounded $n$ times per year.
