College Algebra 7th Edition

Published by Brooks Cole
ISBN 10: 1305115546
ISBN 13: 978-1-30511-554-5

Chapter 8, Sequences and Series - Section 8.4 - Mathematics of Finance - 8.4 Exercises: 11

Answer

$\$ 13,007.94$

Work Step by Step

We are given: $R=1000, i= \frac{0.09}{2}=0.045, n=20$ The present value of an annuity is given by: $A_{p}=R \frac{1-(1+i)^{-n}}{i}$ $A_{p}=1000\frac{1-(1+0.045)^{-20}}{0.045}=\$ 13,007.94$
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