Thinking Mathematically Plus MyLab Math -- Access Card Package (7th Edition) (What's New in Service Math)

7th Edition

ISBN: 9780134708300

Author: Robert F. Blitzer

Publisher: PEARSON

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Textbook Question

Chapter 8.5, Problem 21E

Here are additional formulas that you will use to solve some of the remaining exercises. Be sure you understand what each formula describes and the meaning of the variables in the formulas.

A = P ( 1 + r ) t A = P ( 1 + r n ) n t

In Exercises 21-22, round all answers to the nearest dollar.

Here are two ways of investing $30,000 for 20 years.

•	Lump-SumDeposit	Rate	Time
•		$30,000	5% compounded annually	20 years

•	Periodic Deposit	Rate	Time
•		$1500 at the end of each year	5% compounded annually	20 years

a. After 20 years, how much more will you have from the lump-sum investment than from the annuity?

b. After 20 years, how much more interest will have been earned from the lump-sum investment than from the annuity?

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Chapter 8.5, Problem 20E

Chapter 8.5, Problem 22E

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Chapter 8 Solutions

Thinking Mathematically Plus MyLab Math -- Access Card Package (7th Edition) (What's New in Service Math)

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Solution Summary: The author calculates the extra amount that a person will have from lump sum investment than from the annuity after 20years.

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