1. Dahlia invested $300 at the end of each month into a fund that pays 3.6 % per year, compounded- monthly. a) Use a timeline to determine the future value of the annuity after five months./ 1s Payment 2nd Payment 3rd Payment 4th Payment 5th Payment Now Total Future Value b) Use Future Value formula and find how much amount will Dahlia have in 5 years if the annual interest rate remains the same. Show all your work. c) How much interest will Dahlia earn in 5 years?

College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
Chapter6: Exponential And Logarithmic Functions
Section: Chapter Questions
Problem 5RE: A retirement account is opened with an initialdeposit of 8,500 and earns 8.12 interest compounded...
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1. Dahlia invested $300 at the end of each month into a fund that pays 3.6 % per year, compounded.
monthly.
a) Use a timeline to determine the future value of the annuity after five months./
1s Payment 2nd Payment 3d Payment 4" Payment
5h Payment
Now
Total Future Value
b) Use Future Value formula and find how much amount will Dahlia have in 5 years if the annual interest
rate remains the same. Show all your work.
c) How much interest will Dahlia earn in 5 years?
Transcribed Image Text:1. Dahlia invested $300 at the end of each month into a fund that pays 3.6 % per year, compounded. monthly. a) Use a timeline to determine the future value of the annuity after five months./ 1s Payment 2nd Payment 3d Payment 4" Payment 5h Payment Now Total Future Value b) Use Future Value formula and find how much amount will Dahlia have in 5 years if the annual interest rate remains the same. Show all your work. c) How much interest will Dahlia earn in 5 years?
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