Answer:
A. 13,275.43
Step-by-step explanation:
Given the principal as $95, annual rate as 3% and term of the annuity as10yrs/
#First we determine the effective rate per payment period
[tex]i_{12}=0.03/12=0.0025[/tex]
# Annuity formula is given as:
[tex]A=P[{\frac{(1+i)^n-1)}{i}}], \ i=0.0025, n=12\times10=120,p=95\\\\A=95[{\frac{(1.0025)^{120}-1)}{0.0025}}]\\\\A=13275.43[/tex]
Hence, Veronica needs to save $13,275.43
