babanumba1
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- Feb 7, 2009
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...where n is the number of perio? The future value (F of n) of an annuity type of investment is given by the expression (F of n)= P((1+i)^n-1)/i, where n is the number of periodic payments P and i is the interest rate over the period of each payment. Tolliver plans to save $1,500 each year for 18 years, at an annual interest rate of 6.6%.
a. How much will he have in his account at the end of that time?
b. How much will he have if he saves $1,200 for 18 years at 7.25%?
a. How much will he have in his account at the end of that time?
b. How much will he have if he saves $1,200 for 18 years at 7.25%?