College Algebra 7th Edition

Published by Brooks Cole
ISBN 10: 1305115546
ISBN 13: 978-1-30511-554-5

Chapter 8, Sequences and Series - Chapter 8 Review - Exercises - Page 641: 65

Answer

$\$2390.27$

Work Step by Step

To calculate the amount $R$ to be invested each quarter we will use the formula: $$A_f=R\dfrac{(1+i)^n-1}{i},$$ where $A_f=10,000$, $n=4$ and $i=0.12/4=0.03$. Calculate $R$: $$\begin{align*} 10,000&=R\dfrac{(1+0.03)^{4}-1}{0.03}\\ 10,000&\approx R(4.183627)\\ R&=\dfrac{10000}{4.183627}\approx 2390.27. \end{align*}$$
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