annuity / compound interest help  TOPIC_SOLVED

Quadratic equations and inequalities, variation equations, function notation, systems of equations, etc.

annuity / compound interest help

Postby ChrisV00 on Thu Apr 25, 2013 11:29 pm

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?
ChrisV00
 
Posts: 3
Joined: Thu Apr 25, 2013 10:45 pm

Sponsor

Sponsor
 

Re: annuity / compound interest help  TOPIC_SOLVED

Postby buddy on Fri Apr 26, 2013 12:00 am

ChrisV00 wrote: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.
buddy
 
Posts: 123
Joined: Sun Feb 22, 2009 10:05 pm

Re: annuity / compound interest help

Postby ChrisV00 on Fri Apr 26, 2013 12:47 am

Ok thank u
ChrisV00
 
Posts: 3
Joined: Thu Apr 25, 2013 10:45 pm


Return to Intermediate Algebra