Monday

December 22, 2014

December 22, 2014

Posted by **ms guzman** on Wednesday, September 22, 2010 at 1:48pm.

a) What is the value of the fund at the end of 8 years? $

b) What is the value of the fund after an additional 4 years? $

- math -
**MathMate**, Wednesday, September 22, 2010 at 4:46pmFor an annual payment P for n years at interest rate r, the value of the investment is

A=Pr^n+Pr^(n-1)+....Pr

=Pr(1+r+r²+...+r^{n-1})

=Pr(r^{n}-1)/(r-1)

After 8 years

P=5000

r=1.0615

n=8

A=5000*1.0615*(1.0615^8-1)/(.0615)

=52814.48

For the next 4 years

A=52814.48*1.0615^4

=67055.28

**Answer this Question**

**Related Questions**

math - Your invest $3,000 annually in a mutual fund that earns 10 percent ...

mat/116 - Please help me slove this question. An investor invested a total of $3...

Algebra - Greta invests $10,000 in an investment that pays 3% interest, ...

algebra - an investor invested a total of 1,600 in 2 mutual funds.One fund ...

Finance - On August 1, 2005 you invested $3,000 into a mutual fund. You then ...

math 141 - Maria just inherited $10,000. Her bank has a savings account that ...

Finance - Your Uncle has two alternative inheritence for you. A. You receive ...

math - Michael invested $1600 per half-year in an IRA each half-year for 9 years...

Statistics - You have received a year-end bonus of $5000. You decide to invest ...

accounting - novelty industries is establishing a sinking fund to redeem rs ...