Calculus with Applications (10th Edition)

Published by Pearson
ISBN 10: 0321749006
ISBN 13: 978-0-32174-900-0

Chapter 12 - Sequences and Series - 12.2 Annuities: An Application of Sequences - 12.2 Exercises - Page 622: 19



Work Step by Step

We are given $R=50.000$ $i=\frac{0.08}{4}=0.02$ $n=10\times4=40$ the formula is $P=R[\frac{1-(1+i)^{-n}}{i}]$ so $\rightarrow P=50.000[\frac{1-(1+0.02)^{-40}}{0.02}] \approx \$ 1,367,774$
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