Precalculus: Concepts Through Functions, A Unit Circle Approach to Trigonometry (3rd Edition)

Published by Pearson
ISBN 10: 0-32193-104-1
ISBN 13: 978-0-32193-104-7

Chapter 11 - Sequences; Induction; the Binomial Theorem - Section 11.3 Geometric Sequences; Geometric Series - 11.3 Assess Your Understanding - Page 845: 92

Answer

$\$ 66,438.85$

Work Step by Step

Let us consider that $P$ is defined as the deposit in dollars made at the end of each payment period for annuity, when a person pays $i$ percent interest per payment period. The formula for amount $A$ of the annuity after $n$ deposits can be written as: $ A=P\cdot\dfrac{(1+i)^{n}-1}{i}$ We are given that $P=1000 \\ n=30 \\ i=\dfrac{0.10}{2}=0.05$ Therefore, $A=1000\times \dfrac{(1+0.05)^{30}-1}{0.05}\approx \$ 66,438.85$
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