11th Edition

ISBN: 9780136845881

Author: Sullivan

Publisher: VST

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Textbook Question

Chapter 4.2, Problem 46AYU

Future Value of Money Suppose that you make deposits of $500 at the beginning of every year into an Individual Retirement Account (IRA), earning interest r (expressed as a decimal). At the beginning of the first year, the value of the account will be $ 500 ; at the beginning of the second year, the value of the account, will be

$ 500 + $ 500 r + $ 500 = 500 r + 1000

Verify that the value of the account at the beginning of the third year is T ( r ) = 500 r 2 + 1500 r + 1500 .

The account value at the beginning of the fourth year is F ( r ) = 500 r 3 + 2000 r 2 + 3000 r + 2000 . If the annual rate of interest is 5 % = 0.05 , what will be the value of the account at the beginning of the fourth year?

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Chapter 4.2, Problem 45AYU

Chapter 4.2, Problem 47AYU

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Chapter 4 Solutions

EBK PEARSON ETEXT PRECALCULUS -- ACCESS

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Solution Summary: The author explains how to calculate the value of an account at the beginning of the fourth year, if interest rate r=5%=0.05.

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