Algebra 2 (1st Edition)

Published by McDougal Littell
ISBN 10: 0618595414
ISBN 13: 978-0-61859-541-9

Chapter 12 Sequences and Series - 12.3 Analyze Geometric Sequences and Series - 12.3 Exercises - Problem Solving - Page 817: 62

Answer

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Work Step by Step

The deposit is $\$2000 \rightarrow a_1=2000$ The annual interest is $5\% \rightarrow r=1+0.05=1.05$ You make a total of 30 deposits, $n=30$ The total money you have in your IRA immediately after you make your last deposit: $$S_{30}=\sum a_1 (r)^{i-1}\\=\sum a_1(1.05)^{i-1}\\=2000.\frac{1-1.05^{30}}{1-1.05}\\=132877.695$$
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