College Algebra 7th Edition

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

Chapter 8, Sequences and Series - Section 8.4 - Mathematics of Finance - 8.4 Exercises - Page 622: 4


$\$ 12,966.59$

Work Step by Step

We are given: $R=500, i= \frac{0.08}{12}=0.00\bar6, n=24$ The amount of an annuity is given by: $A_{f}=R \frac{(1+i)^{n}-1}{i}$ $A_{f}=500\frac{(1+0.0066667)^{24}-1}{0.0066667}=\$ 12,966.59$
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