## College Algebra (6th Edition)

a). Saving at age 25 per month = 50 Compound interest rate is 5.5% = 0.055 Amount received after n year A = $\frac{P [(1 + \frac{r}{n})^{n\times t} - 1]}{\frac{r}{n}}$ Amount received at age 65 after 40 year A = $\frac{50 [(1 + \frac{0.055}{12})^{12\times 40} - 1]}{\frac{0.055}{12}}$ = $50\frac{ 7.9797}{0.00458}$ = 50 $\times$ 1741= 87052 b). Interest = 87052 - (50$\times$12$\times$40) = 87052 - 24000 = 63052