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: 55


The amount that will be received after 30 years is $\$91,361$ and the interest that will be received is $\$55,361$ dollars.

Work Step by Step

Put in the values: $ P=100,r=0.055,n=12,t=30$ So, $\begin{align} & A=\frac{100\left[ {{\left( 1+\frac{0.055}{1} \right)}^{12\cdot 30}}-1 \right]}{\frac{0.055}{12}} \\ & A\approx \$91,361\\\end{align}$ Here, interest is equal to the value of annuity minus total deposit. Thus, $\begin{align} & \text{Interest}\approx \$91,361-\$100\cdot12\cdot30\\&\approx\$55,361\end{align}$
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