Explanation Given: In an account $9000 is deposited at the beginning of each year for 40 years into an account paying 8 % compounded annually. Formula used: Formula to find sum of GP, S n = a ( 1 − r n ) 1 − r Calculation: It is given that in an account $9000 is deposited at the beginning of each year for 40 years into an account paying 8 % compounded annually. So, the last deposit earns interest for first year and amounts to 9000 ( 1.08 ) . The second to last deposit earns interest for two years and amounts to 9000 ( 1.08 ) 2 . This pattern goes on and at the end of 40 th year, the amount will become 9000 ( 1.08 ) 40 . The value of annuity is the sum of finite geometric series: S 40 = 9000 ( 1.08 ) + 9000 ( 1

6th Edition

ISBN: 9780321916600

Author: Mark Dugopolski

Publisher: PEARSON

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Sequence and Series

A sequence is defined as a collection of things. Series is defined to sum the things one by one in the sequence. It was invented by German mathematician Carl Friedrich Gauss.

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Chapter 8.3, Problem 98E

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To calculate: The final amount in the account at the end of 40^th year, where $9000 is deposited at the beginning of each year for 40 years into an account paying 8% compounded annually.

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Chapter 8.3, Problem 97E

Chapter 8.3, Problem 99E

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The final amount in the account at the end of 40 th year, where $9000 is deposited at the beginning of each year for 40 years into an account paying 8 % compounded annually.

Solution Summary: The author explains how 9000 is deposited at the beginning of each year for 40 years into an account paying 8% compounded annually.

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To calculate: The final amount in the account at the end of 40^th year, where $9000 is deposited at the beginning of each year for 40 years into an account paying 8% compounded annually.

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Chapter 8 Solutions

The final amount in the account at the end of 40 th year, where $9000 is deposited at the beginning of each year for 40 years into an account paying 8 % compounded annually.

Solution Summary: The author explains how 9000 is deposited at the beginning of each year for 40 years into an account paying 8% compounded annually.

Concept explainers

Videos

To calculate: The final amount in the account at the end of 40th year, where $9000 is deposited at the beginning of each year for 40 years into an account paying 8% compounded annually.

Want to see the full answer?

Chapter 8 Solutions

To calculate: The final amount in the account at the end of 40^th year, where $9000 is deposited at the beginning of each year for 40 years into an account paying 8% compounded annually.