Answer:
the future value of an annuity is $3,049,771.89
Explanation:
The computation of the future value of an annuity is shown below:
= Monthly deposit × {(1 + interest rate)^number of years - 1 ÷ rate of interest}
= $625 × {(1 + 11.4% ÷ 12)^34 × 12 - 1 ÷ 11.4% ÷ 12}
= 625 × ((1 + 0.95%)^408 - 1) ÷ 0.95%
= 625 × 4,879.64
= $3,049,771.89
Hence, the future value of an annuity is $3,049,771.89
