Suppose you invest $100 a month in an annuity thatearns 4% APR compounded monthly. How much moneywill you have in this account after 2 years?A. $2400.18B. $2518.59C. $1004.48D. $3908.26

Answer:   $2502.60Step-by-step explanation:The formula for the amount of an annuity due is ...   A = P(1 +r/n)((1 +r/n)^(nt) -1)/(r/n)where P is the monthly payment (100), r is the annual interest rate (.04), n is the number of compoundings per year (12), and t is the number of years (2). Given these numbers, the formula evaluates to ...   A = $100(1.00333333)(1.00333333^24 -1)/0.00333333   = $100(301)(0.08314296)   = $2502.60_____This value is confirmed by a financial calculator. The given answer choices all appear to be incorrect. The closest one corresponds to an annual interest rate (APR) of 4.286%, not 4%.