Concept explainers
If P dollars are invested annually in an annuity (investment fund), after n years, the annuity will be worth
where r is the interest rate, compounded annually.
Kate invests $3000 annually in an annuity from Mersenne Fund that earns 6.57% interest. How much is the investment worth after 18 yr? Round to the nearest cent.
Want to see the full answer?
Check out a sample textbook solutionChapter R Solutions
Calculus and Its Applications, Books a la Carte Plus MyLab Math Access Card Package (11th Edition)
Additional Math Textbook Solutions
Calculus & Its Applications (14th Edition)
Calculus: Early Transcendentals (3rd Edition)
Thomas' Calculus: Early Transcendentals (14th Edition)
University Calculus: Early Transcendentals (3rd Edition)
Glencoe Math Accelerated, Student Edition
- Interest Ron Hampton needs to choose between two investments: One pays 6% compounded annually, and the other pays 5.9% compounded monthly. If he plans to invest 18,000 for 2 years, which investment should he choose? How much extra interest will he earn by making the better choice?arrow_forwardAllan invested $10,000 in a mutual fund. If the interest rate is 5%, how much will be in the account in 15 years by each method of compounding? compound quarterly compound monthly compound continuouslyarrow_forwardNew grandparents decide to invest 3200 per month in an annuity for their grandson, The account will pay interest per year which is compounded monthly. How much will be in the child's account at his twenty-first birthday?arrow_forward
- Calculus For The Life SciencesCalculusISBN:9780321964038Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.Publisher:Pearson Addison Wesley,College AlgebraAlgebraISBN:9781305115545Author:James Stewart, Lothar Redlin, Saleem WatsonPublisher:Cengage Learning
- Algebra & Trigonometry with Analytic GeometryAlgebraISBN:9781133382119Author:SwokowskiPublisher:CengageAlgebra for College StudentsAlgebraISBN:9781285195780Author:Jerome E. Kaufmann, Karen L. SchwittersPublisher:Cengage LearningIntermediate AlgebraAlgebraISBN:9781285195728Author:Jerome E. Kaufmann, Karen L. SchwittersPublisher:Cengage Learning