Precalculus (6th Edition) Blitzer

Published by Pearson
ISBN 10: 0-13446-914-3
ISBN 13: 978-0-13446-914-0

Chapter 10 - Review Exercises - Page 1125: 54


The amount that will be received after 20 years is $\$19,129$ and the interest that will be received is $\$8729$ dollars.

Work Step by Step

We plug in: $ P=520,r=0.06,n=1,t=20$ Therefore, $\begin{align} & A=\frac{520\left[ {{\left( 1+\frac{0.06}{1} \right)}^{1\cdot 20}}-1 \right]}{0.06} \\ & A=\frac{520\left[ {{\left( 1.06 \right)}^{20}}-1 \right]}{0.06} \\ & A\approx \$19,129\\\end{align}$ The interest is equal to the value of annuity minus total deposit. Thus, $\begin{align} & \text{Interest}\approx \$19,129-\$520\cdot20\\&\approx\$8729\end{align}$
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