
Concept explainers
How much money to be invested in each quarter.

Answer to Problem 9E
The amount of an annuity is $572.34.
Explanation of Solution
The amount of annuity is a sum of all individual payment which is paid for given period with interest. Annuity is sum of money which paid in regular equal payment.
Formula:
Amount of annuity formula is
Where,
A = amount of annuity
i = interest rate
n = period
R = regular equal payment
Calculation:
Amount of annuity = $5,000
Interest rate (i) = 10%,
Quarter payment Period (n) =
Calculate the quarter invested amount:
Therefore, the invested amount n the quarter is $572.34.
Chapter 12 Solutions
Precalculus: Mathematics for Calculus - 6th Edition
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