College Algebra (10th Edition)

Published by Pearson
ISBN 10: 0321979478
ISBN 13: 978-0-32197-947-6

Chapter 9 - Section 9.3 - Geometric Sequences; Geometric Series - 9.3 Assess Your Understanding - Page 665: 92


${{\$}} 66,438.85$

Work Step by Step

THEOREM: Amount of an Annuity Suppose that $P$ is the deposit in dollars made at the end of each payment period for annuity paying i percent interest per payment period. The amount $A$ of the annuity after $n$ deposits is$ A=P\displaystyle \frac{(1+i)^{n}-1}{i}$ --- $P=1000$ $n=30$ $i=\displaystyle \frac{0.10}{2}=0.05$ $A=1000\displaystyle \frac{(1+0.05)^{30}-1}{0.05}\approx 66,438.85$
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