Precalculus (6th Edition) Blitzer

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

Chapter 10 - Section 10.3 - Geoetric Sequences and Series - Exercise Set - Page 1075: 79


a. $87,025$ dollars. b. $63,025$ dollars.

Work Step by Step

a. Given $P=50, r=0.055, t=65-25=40, n=12$ we use the annuity formula: $A=\frac{P[(1+\frac{r}{n})^{nt}-1]}{\frac{r}{n}}=\frac{50[(1+\frac{0.055}{12})^{12(40)}-1]}{\frac{0.055}{12}}\approx87,025$ dollars. b. The amount of interest earned is the difference between the final amount and the total investment. Thus, we have $I=87,025-50(12)(40)=63,025$ dollars.
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