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: 82

Answer

A) $\$956793$ B) $\$356793$

Work Step by Step

(a) From the given information, we get $P=\$15000$ for 3 months and $r=0\cdot 09$ for $t=10\,\text{years}$. It is compounded quarterly, hence $n=4$. Thus: $\begin{align} & A=\frac{15000\left[ {{\left( 1+\frac{0.09}{4} \right)}^{4\times 10}}-1 \right]}{\left( \frac{0.09}{4} \right)} \\ & =\frac{15000\left[ {{\left( 1.0225 \right)}^{4\times 10}}-1 \right]}{\left( 0.0225 \right)} \\ & =\frac{15000\left[ \left( 2.4351 \right)-1 \right]}{\left( 0.0225 \right)} \\ & =956793 \end{align}$
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