Answer:
The amount that will be in the account after 38 years is $ 36811,05
Step-by-step explanation:
a)
For resolved this exercise used the next equation
R(1-(1 + i)--) Ap = ... (1)
Ap = Amount in account
R = Paid monthly
i = Monthly interest rate
t = Months for paid
Dates
i=- 2.05% 12 = 0,1708% = 0.0017
The interest is divided for 12 because is annual and the formula is mensual
t = 15yearsx12 = 180 months
R = 220$
R(1-(1 + i)-) Ap =
220(1-(1 + 0.0017)-180) Ap = 0.0017
162,04 Ap=0.0017
Ap = 95321,855
The amount that will be in the account after 15 years is $ 95,321.85
b)
R(1-(1 + i)--) Ap = ... (1)
Ap = Amount in account
R = Paid monthly
i = Monthly interest rate
t = Months for paid
i=- 4,99% -= 0,415% = 0.0041
The interest is divided for 12 because is annual and the formula is mensual
t = 38yearsx12 = 456 months
R = 180$
R(1-(1 + i)-) Ap =
Ap = 180(1-(1 + 0.0041) -456 0.0041
Ap = 36811,055
The amount that will be in the account after 38 years is $ 36811,05
