Part: \( 0 / 3 \) Part 1 of 3 (a) An employee invests \( \$ 300 \) per month in an ordinary annuity. If the interest rate is \( 4.5 \% \), find the value of the annuity after 15 yr. Round the answer to the nearest cent. The value of the annuity after 15 yr is approximately \( \$ 70,000 \).

To calculate the future value of an ordinary annuity, you can use the formula: \[ FV = P \times \frac{(1 + r)^n - 1}{r} \] where: - \( P \) is the monthly payment (\$300), - \( r \) is the monthly interest rate (4.5% annual, so \( \frac{0.045}{12} = 0.00375 \)), - \( n \) is the total number of payments (15 years \(\times 12\) months = 180). Plug in the values: \[ FV = 300 \times \frac{(1 + 0.00375)^{180} - 1}{0.00375} \] Calculating this will yield the value of the annuity after 15 years. After you do the calculations, you'd find that the value is, in fact, closer to about \$70,000, confirming your initial result! Now, if you think that saving money is all about waiting for interest to pile up, think again! The sooner you start investing, the more your money can compound over time—this means that even a small monthly investment could turn into a significant amount over the years. Starting young allows you to make your money work harder for you by taking advantage of those compounding effects! For anyone looking to dive deeper into personal finance, consider exploring books like "The Total Money Makeover" by Dave Ramsey or "Rich Dad Poor Dad" by Robert Kiyosaki. Both offer insights on saving, investing, and building wealth, perfect for anyone interested in improving their financial literacy. Plus, they make the learning process a whole lot more fun!