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December 20, 2014

December 20, 2014

Posted by **Anonymous** on Wednesday, September 21, 2011 at 8:26pm.

I'm confused.

- Calculus -
**Steve**, Thursday, September 22, 2011 at 11:29amThe bond grows for 20 years, so you need to calculate the value after the 20th year. Since it grows by 3.9% per year, multiply each year's value by 1.039 to get the next year's value.

ding ding ding - use the growth factor formula: Tn = a r^(n-1)

a=5000

n=20

r = 1.039

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