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: 8

Answer

$\$ 281,579.50$

Work Step by Step

We are given: $R=2000, i=0.05, n=40$ The amount of an annuity is given by: $A_{f}=R \frac{(1+i)^{n}-1}{i}$ $A_{f}=2000\frac{(1+0.05)^{40}-1}{0.05}=\$ 281,579.50$
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.