Answer:(a) $3,028.02, of which $528.02 is interest; (b) $8,308.18; (c) about $169.92 per month
All three parts use the same interest rate per compounding period and the same number of periods. The rate is 4.8%/a compounded monthly, so i=120.048=0.004 per month and n=4×12=48 months. The growth factor (1.004)48≈1.21120656 appears in every part: compute it once and keep all the decimals in your calculator, rounding only at the end.
(a) Compound interest. A single deposit grows by the compound-interest formula A=P(1+i)n:
A=2500(1.004)48≈2500×1.21120656≈3028.02
The deposit grows to about $3,028.02, so the interest earned is A−P≈3028.02−2500=528.02, about $528.02. Trap: using i=0.048 with n=4 gives $3,015.68, which is what annual compounding would pay; monthly compounding needs the monthly rate and the number of months.
(b) Future value of an annuity. The $100 deposits form an ordinary simple annuity: equal payments at the end of each month, with the payment interval matching the compounding period. Their total value at the end of the 4 years is
FV=Ri(1+i)n−1=100×0.004(1.004)48−1≈100×0.0040.21120656≈100×52.80164≈5280.16
Add the lump sum from part (a): A+FV≈3028.02+5280.16=8308.18, so her savings total about $8,308.18. (She deposited $2,500 plus 48 deposits of $100, or $7,300 in all, so $1,008.18 of the total is interest.) The $2,500 is not part of the annuity: it was deposited once, today, so it is handled separately with the formula from part (a).
(c) Solving for the payment. The lump sum already grows to $3,028.02, so the monthly deposits must supply the rest, 12,000−3028.02=8971.98. Set the annuity's future value equal to this amount and solve for R:
8971.98=R0.004(1.004)48−1⟹R=0.211206568971.98×0.004≈169.92
She needs to deposit about $169.92 at the end of every month. Check: R×52.80164≈169.92×52.80164≈8972.05, and adding $3,028.02 gives just over $12,000, so the rounded payment does reach the goal. The trap here is to set the whole $12,000 equal to the annuity's future value, which gives $227.27 per month, forgetting that the lump sum does part of the work.
(a) $3,028.02, of which $528.02 is interest; (b) $8,308.18; (c) about $169.92 per month.