Zach wants to invest $275 each month into an account that pays 2.11% compounded monthly for 25 years. How much will Zach accumulate?

Part a) (2 pts) Which formula is appropriate for this problem? (Simple Interest, Compound Interest, Savings Annuity, Payout Annuity, Monthly Payment on a Loan, Maximum Loan Amount, or one of the Mortgage-specific formulas, Future Value Needed (if making a one-time deposit), Future Value Needed (if making multiple deposits))

Part b) (5 pts) How much will Zach have at the end of 25 years?

• Write out
  • 1) the correct formula with variables (e.g. P₀, P_N, N, r, etc.), and
  • 2) the correct formula with the numerical values (round your answer to the nearest cent), and
  • 3) write the answer in a complete sentence.