Suppose victor smokes 6 packs of cigarettes a week. A) If the cigarettes that victor smokes cost $4.00 a pack, then how much money will victor spend on cigarettes for the next 16 years? Assume that the price of the pack of cigarettes and the number of packs of cigarettes that victor smokes a week remain constant for the next 16 years. B) Victor has dicided to quit smoking and invest the money (that he normally spends on cigarettes) at the end of each week into an increasing annuity that earns 1.02% interest compounded weekly. Find the amount of money victor would have in the account at the end of 16 years using the appropriate formula. C) Find the total amount of interest that victor would earn during the 16 years of investing his cigarette money into the increasing annuity described in part b.
Suppose victor smokes 6 packs of cigarettes a week.
A) If the cigarettes that victor smokes cost $4.00 a pack, then how much money will victor spend on cigarettes for the next 16 years? Assume that the price of the pack of cigarettes and the number of packs of cigarettes that victor smokes a week remain constant for the next 16 years.
B) Victor has dicided to quit smoking and invest the money (that he normally spends on cigarettes) at the end of each week into an increasing
C) Find the total amount of interest that victor would earn during the 16 years of investing his cigarette money into the increasing annuity described in part b.
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