1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lozanna [386]
3 years ago
9

Suppose that you earned a​ bachelor's degree and now​ you're teaching high school. The school district offers teachers the oppor

tunity to take a year off to earn a​ master's degree. To achieve this​ goal, you deposit $4000 at the end of each year in an annuity that pays 6.5% compounded annually.
a. how much will you have saved at the end of 5 years?
b. Find the interest.
Mathematics
1 answer:
stepan [7]3 years ago
3 0

Answer:

Step-by-step explanation:

Answer:

a. The amount that is saved at the expiration of the 5 year period is $22,769.20¢

b. The amount of interest is $2,769.20¢

Step-by-step explanation:

Since the amount that is deposited every year for a period of five years is $4,000 and the rate of the interest is 6.5%. We can always calculate the amount that is saved at the expiration of the five years.

    We will first state the formula for calculating the future value of annuity:-

      Future value of annuity =

                      P[\frac{(1 + r)^{t}-1 }{r}]

   Where P is the amount deposited per year.

   r is the rate of interest

   t is the time or period

 

    and in this case, the actual value of P = $4,000

      rate of interest, r is 6.5% = 0.065

      time, t is 5 years.

   Substituting e, we have:

   Fv of annuity =

                          4,000[\frac{(1 + 0.065)^{5}-1 }{0.065 }]

   = 4,000 × [((1.065)^5)- 1/0.065]

 = 4,000 × [(1.37 - 1)/0.065]

 = 4,000 × (0.37/0.065)

 = 4,000 × 5.6923

 = $22,769.20¢

a. Therefore the amount that is saved at the end of the five (5) years is $22,769.20¢

b. To find the interest, we will calculate the amount of deposit made during the period of five years and subtract the sum from the current amount that is saved ($22,769.29¢).

  Since I deposited 4,000 every year for five years, the total amount of deposit I made at the period =

       4,000 × 5 = $20,000

  The amount of interest is then = $22,769.20¢ - $20,000 = $2,769.20¢

You might be interested in
What proportional segment lengths verify that BC¯¯¯¯¯∥DE¯¯¯¯¯ ? Fill in the boxes to correctly complete the proportion. $$ = $$
Alborosie

answer is

4/6 then 3.2

took the test

5 0
3 years ago
Read 2 more answers
Eleven hundredths in percent
tensa zangetsu [6.8K]
Just move the decimal twice to the right. So 11%
3 0
2 years ago
Read 2 more answers
A contractor estimates $2,400 to build a deck to a customer’s specifications, How much would it cost to build five similar decks
Bumek [7]
5*2400=$12,000 is the total costs for 5 decks costing $2,400 each.
3 0
3 years ago
Please if anyone can answer?
Leviafan [203]

Answer:Oof your stuff looks hard!

Step-by-step explanation:

8 0
3 years ago
Read 2 more answers
Enter the set described below:
LenKa [72]

Answer:

  {1, 5, 25, 125, 625}

Step-by-step explanation:

The smallest positive integers that meet the requirement will be ...

  5^0 = 1

  5^1 = 5

  5^2 = 25

  5^3 = 125

  5^4 = 625

As a set, these numbers are {1, 5, 25, 125, 625}.

7 0
2 years ago
Other questions:
  • 7. The box plots show the average gas mileage of
    5·2 answers
  • Tell me I am correct or not
    5·1 answer
  • An office upgrades its internet speed from 15^6 bits per second to 15^9 bits per second. How many times greater is the new inter
    14·2 answers
  • A group of 8 Trends (5 girls and 3 boys) plans to watch a movie, but they have only 5 tickets. How many different combinations o
    9·1 answer
  • Question 25 Janice puts a fence around her rectangular garden. The garden has a length that is 9 feet less than 3 times its widt
    6·1 answer
  • What percentage of Adults purchased Fast Pass Access Tickets?
    11·1 answer
  • Find a . b if a = (4.3) and b = (4,5).<br><br> a. 31<br> b. (8,8)<br> c. (16,15)<br> d. -1
    10·2 answers
  • What is the IQR of <br>15,19,20,25,25,28,29,30,30,35,37,43<br>​
    9·2 answers
  • A family of 8 people is entitled to a ratio of 6400 grams of sugar. What will be the sugar ratio for a family of 10 people?
    12·2 answers
  • An antique vase is worth £300 when I buy it, its value increases by 2% each year. How much will it be worth in 8 years time?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!