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juin [17]
3 years ago
6

Gayle starts to save at age 20 for an extended vacation around the world that she will take on her 45th birthday. She will contr

ibute $1000 each year to the account, which earns 1.65% annual interest, compounded quarterly. What is the future value of this investment when she takes her trip?
Mathematics
2 answers:
Katen [24]3 years ago
8 0
For this case we have the following equation:
 P (t) = P (1 + r / n) ^ (n * t)
 Where,
 P: initial investment
 r: interest
 n: periods
 t: time
 she will take on her 45th birthday:
 for t = 25:
 P (25) = 1000 * (1 + 0.0165 / 4) ^ (4 * 25)
 P (25) = 1509.31 $
 Answer:
 The future value of this investment when she takes her trip is:
 P (25) = 1509.31 $
notsponge [240]3 years ago
3 0

Answer: $30,867.18. I just took the test.

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