Concept explainers
How much money to be invested in each quarter.
Answer to Problem 9E
The amount of an annuity is $572.34.
Explanation of Solution
The amount of annuity is a sum of all individual payment which is paid for given period with interest. Annuity is sum of money which paid in regular equal payment.
Formula:
Amount of annuity formula is
Where,
A = amount of annuity
i = interest rate
n = period
R = regular equal payment
Calculation:
Amount of annuity = $5,000
Interest rate (i) = 10%,
Quarter payment Period (n) =
Calculate the quarter invested amount:
Therefore, the invested amount n the quarter is $572.34.
Chapter 12 Solutions
Precalculus: Mathematics for Calculus - 6th Edition
- Calculus: Early TranscendentalsCalculusISBN:9781285741550Author:James StewartPublisher:Cengage LearningThomas' Calculus (14th Edition)CalculusISBN:9780134438986Author:Joel R. Hass, Christopher E. Heil, Maurice D. WeirPublisher:PEARSONCalculus: Early Transcendentals (3rd Edition)CalculusISBN:9780134763644Author:William L. Briggs, Lyle Cochran, Bernard Gillett, Eric SchulzPublisher:PEARSON
- Calculus: Early TranscendentalsCalculusISBN:9781319050740Author:Jon Rogawski, Colin Adams, Robert FranzosaPublisher:W. H. FreemanCalculus: Early Transcendental FunctionsCalculusISBN:9781337552516Author:Ron Larson, Bruce H. EdwardsPublisher:Cengage Learning