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: 5

Answer

$\$ 360,262.21$

Work Step by Step

We are given: $R=\$ 5000, i=0.12, n=20$ The amount of an annuity is given by: $A_{f}=R \frac{(1+i)^{n}-1}{i}$ $A_{f}=5000\frac{(1+0.12)^{20}-1}{0.12}=\$ 360,262.21$
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