College Algebra (6th Edition)

Published by Pearson
ISBN 10: 0-32178-228-3
ISBN 13: 978-0-32178-228-1

Chapter 8 - Sequences, Induction, and Probability - Concept and Vocabulary Check: 4

Answer

A sequence of equal payments made at equal time periods is called a/an $annuity.$ Its value, A, after t years is given by the formula, $A = \frac{P[(1+\frac{r}{n})^{nt}-1]}{\frac{r}{n}}$ where $P$ is the deposit made at the end of each compounding period at $r$ percent annual interest compounded $n$ times per year.

Work Step by Step

A sequence of equal payments made at equal time periods is called a/an $annuity.$ Its value, A, after t years is given by the formula, $A = \frac{P[(1+\frac{r}{n})^{nt}-1]}{\frac{r}{n}}$ where $P$ is the deposit made at the end of each compounding period at $r$ percent annual interest compounded $n$ times per year.
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