## annuity / compound interest help

Quadratic equations and inequalities, variation equations, function notation, systems of equations, etc.
ChrisV00
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### annuity / compound interest help

Ok i need help understanding this math question please help me.
QUESTION: Jo spends \$3600 a year on cigarettes. If Jo quits smoking and deposits the \$3600 yearly into an account paying 5%/a compounded annually, how much will be in the account after 40 years?

buddy
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### Re: annuity / compound interest help

Ok i need help understanding this math question please help me.
QUESTION: Jo spends \$3600 a year on cigarettes. If Jo quits smoking and deposits the \$3600 yearly into an account paying 5%/a compounded annually, how much will be in the account after 40 years?
Use the formula they gave you. it should be something like they give here:

FV = PMT * ( [(1+i)^n - 1] /i )

They gave you PMT = 3600, i = 0.05, n = 40. Solve for FV.

ChrisV00
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Joined: Thu Apr 25, 2013 10:45 pm
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Ok thank u