Answer:
- value: $66,184.15
- interest: $6,184.15
Step-by-step explanation:
The future value can be computed using the formula for an annuity due. It can also be found using any of a variety of calculators, apps, or spreadsheets.
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<h3>formula</h3>
The formula for the value of an annuity due with payment P, interest rate r, compounded n times per year for t years is ...
FV = P(1 +r/n)((1 +r/n)^(nt) -1)/(r/n)
FV = 5000(1 +0.06/4)((1 +0.06/4)^(4·3) -1)/(0.06/4) ≈ 66,184.148
FV ≈ 66,184.15
<h3>calculator</h3>
The attached calculator screenshot shows the same result. The calculator needs to have the begin/end flag set to "begin" for the annuity due calculation.
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<h3>a) </h3>
The future value of the annuity due is $66,184.15.
<h3>b)</h3>
The total interest earned is the difference between the total of deposits and the future value:
$66,184.15 -(12)(5000) = 6,184.15
A total of $6,184.15 in interest was earned by the annuity.
Answer:
2
Step-by-step explanation:
7+2n = 11
2n = 11-7
2n = 4
n = 4/2
therefore n = 2
Answer: (a). M=7x180+39+700. (B) $731
Step-by-step explanation:
Answer:its the Third option C
Step-by-step explanation:
Answer:
G
Step-by-step explanation:
Try to understand what this equation is saying and what plugging in different values would represent.
At x=0, b(0)=850; which means the initial balance is $850. So H is incorrect.
At x=1, b(1)=871.25; which means that after 1 year, the initial balance will have increase to $871.25. So J is incorrect.
Since the initial vacation of 850 is being multiplied by a factor which is greater than one, the balance will be increased each year. So F is incorrect.
Finally, if we look at the factor by which we are multiplying, do a simple Algebraic step, and convert it into percentages we get:
1.025 = (1 + 0.025) = 100% + 2.5%
Essentially this is showing us that the balance will increase by 2.5% on however much is in the account each year.
So G is your answer.