Mathematics, 31.07.2019 07:50 vkyles84
According to the formula, if the end of year deposit is $1,777.31, the annual interest rate is 5%, and the term is 18 years, find a. a. $41,088.42 b. $50,000.00 c. $50,968.22 d. $53,920.75
Answers: 1
![\bf ~~~~~~~~~~~~\textit{Future Value of an ordinary annuity}\\ \left. \qquad \qquad \right.(\textit{payments at the end of the period}) \\\\ A=pymnt\left[ \cfrac{\left( 1+\frac{r}{n} \right)^{nt}-1}{\frac{r}{n}} \right]](/tpl/images/0153/5945/402af.png)
![\bf A=1777.31\left[ \cfrac{\left( 1+\frac{0.05}{1} \right)^{1\cdot 18}-1}{\frac{0.05}{1}} \right]\implies A=1777.31\left( \cfrac{1.05^{18}}{0.05} \right)](/tpl/images/0153/5945/1d3b8.png)
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According to the formula, if the end of year deposit is $1,777.31, the annual interest rate is 5%, a...
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