a.
The annual interest rate.
The annual interest rate is
Given information:
The function
where
Concept used:
The Future Value formula:
Where,
Calculation:
The function,
Compare the future value formula in with respect to given equation the interest rate is
Which is annual interest rate is divided by
Conclusion:
The annual interest rate is
b.
To find: How many payments should be there per year?
Given information:
The function
where
Concept Used:
The Future Value formula:
Where,
Calculation:
The function,
Compare
The interest rate of
Conclusion:
c.
To find: The amount of each payment.
The amount of each payment is
Given information:
The function
where
Concept Used:
The Future Value formula:
Where,
Calculation:
Compare the future value formula in with respect to given equation the payment is
Conclusion:
The amount of each payment is
d.
To find: The future value of the annuity
The future value of the annuity is
Given information:
The function
where
Concept used:
The Future Value formula:
Where,
Calculation:
Using the function,
Substitute
Conclusion:
The future value of the annuity is
e.
To graph: The future value function for
Given information:
The function
where
Graph:
Enter the function on
Interpretation:
Enter the function on
Chapter 3 Solutions
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