**Future Value of Annuities**This educational graph displays the future value, in thousands of dollars, of an annuity with a monthly payment of $575 over various periods, considering annual returns of 3.4%, 5.8%, and 2.2%. The time is measured in months up to 360 months (30 years).**Graph Details:**- The horizontal axis represents time in months, labeled in increments from 36 to 360.- The vertical axis shows the future value in thousands of dollars, ranging from 0 to 360.**Curves Explanation:**- **Blue Curve:** Represents a 5.8% annual return. It shows the highest growth over time, reaching above $320,000 by 360 months.- **Purple Curve:** Represents a 3.4% annual return. It shows moderate growth over the same period, surpassing $240,000 by the end.- **Green Curve:** Represents a 2.2% annual return. This curve has the slowest growth, ending just under $200,000 by 360 months.**Matching Rates with Colors:**- 5.8% - **Blue**- 2.2% - **Green**- 3.4% - **Purple**This visualization helps in understanding how different interest rates impact the future value of an annuity over time.

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Answered: The future value in thousands of…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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Suppose a 40-year old person deposits $8000 per year in an individual retirement account until age 65. Find the total in the account with the following assumption of an interest rate. (Assume quarterly compounding, with payments of $2000 made at the end of each quarter period.). Find the total amount of interest earned. 7% The total in the account $___. (Round to the nearest CENT as needed.)
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