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Yakvenalex [24]
3 years ago
14

Sarah is going to invest $280 and leave it in an account for 9 years. Assuming the

Mathematics
1 answer:
Alisiya [41]3 years ago
5 0

Answer:

4.2%

Step-by-step explanation:

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Kathryn deposits 100 into an account at the beggining of each 4 year period for 40 years. The account credits interest at an eff
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6194.84

Step-by-step explanation:

Using the formula for calculating accumulated annuity amount

F = P × ([1 + I]^N - 1 )/I

Where P is the payment amount. I is equal to the interest (discount) rate and N number of duration

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X = 100[(1 + i)^40 + (1 + i)^36 + · · ·+ (1 + i)^4]

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For 20 years,

Y = A(20) = 100[(1+i)^20+(1+i)^16+· · ·+(1+i)^4]

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1 + (1 + i)^20 = 5

so (1 + i)^20 = 4

so (1 + i)^4 = 4^0.2 = 1.319508

Hence X = [100 × (1 + i)^4 × (1 − (1 + i)^40)] / 1 − (1 + i)^4

= [100×1.3195×(1−4^2)] / 1−1.3195

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3 years ago
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