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A worker deposits $650 at the end of each month for 4 years in an investment account with a guaranteed interest rate of 3.71% compounded monthly. (a) Find the value in the account at the end of the 4 years. (b) A rival financial planner offers the worker an investment strategy of depositing $550 a month for 4 years with a guaranteed interest rate of 5.66% compounded monthly. What is the value of this investment strategy at the end of 4 years? (c) How much more money is gained by investing in the better strategy described in part (a) or in part (b)? (a) The worker's deposits form an The value in the account at the end of the 4 years will be $ (Do not round until the final answer. Then round to the nearest cent as needed.) because the deposits are made at the (b) The value of the rival firm's investment strategy at the end of 4 years will be $ (Do not round until the final answer. Then round to the nearest cent as needed.) (c) The worker will gain $ more by investing in the better strategy. (Do not round until the final answer. Then round to the nearest cent as needed.) ~ of each period. Therefore, the formula should be used.

A worker deposits $650 at the end of each month for 4 years in an investment account with a guaranteed interest rate of 3.71% compounded monthly. (a) Find the value in the account at the end of the 4 years. (b) A rival financial planner offers the worker an investment strategy of depositing $550 a month for 4 years with a guaranteed interest rate of 5.66% compounded monthly. What is the value of this investment strategy at the end of 4 years? (c) How much more money is gained by investing in the better strategy described in part (a) or in part (b)? (a) The worker's deposits form an The value in the account at the end of the 4 years will be $ (Do not round until the final answer. Then round to the nearest cent as needed.) because the deposits are made at the (b) The value of the rival firm's investment strategy at the end of 4 years will be $ (Do not round until the final answer. Then round to the nearest cent as needed.) (c) The worker will gain $ more by investing in the better strategy. (Do not round until the final answer. Then round to the nearest cent as needed.) ~ of each period. Therefore, the formula should be used.

Algebra and Trigonometry (6th Edition)
Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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A worker deposits $650 at the end of each month for 4 years in an investment account with a guaranteed interest rate of 3.71% compounded monthly. (a) Find the value in the account at the end of the 4 years. (b) A rival financial planner offers the worker an investment strategy of depositing $550 a month for 4 years with a guaranteed interest rate of 5.66% compounded monthly. What is the value of this investment strategy at the end of 4 years? (c) How much more money is gained by investing in the better strategy described in part (a) or in part (b)? because the deposits are made at the (a) The worker's deposits form an The value in the account at the end of the 4 years will be $ (Do not round until the final answer. Then round to the nearest cent as needed.) (b) The value of the rival firm's investment strategy at the end of 4 years will be $ (Do not round until the final answer. Then round to the nearest cent as needed.) (c) The worker will gain $ more by investing in the better strategy. (Do not round until the final answer. Then round to the nearest cent as needed.) of each period. Therefore, the formula should be used.
Transcribed Image Text:A worker deposits $650 at the end of each month for 4 years in an investment account with a guaranteed interest rate of 3.71% compounded monthly. (a) Find the value in the account at the end of the 4 years. (b) A rival financial planner offers the worker an investment strategy of depositing $550 a month for 4 years with a guaranteed interest rate of 5.66% compounded monthly. What is the value of this investment strategy at the end of 4 years? (c) How much more money is gained by investing in the better strategy described in part (a) or in part (b)? because the deposits are made at the (a) The worker's deposits form an The value in the account at the end of the 4 years will be $ (Do not round until the final answer. Then round to the nearest cent as needed.) (b) The value of the rival firm's investment strategy at the end of 4 years will be $ (Do not round until the final answer. Then round to the nearest cent as needed.) (c) The worker will gain $ more by investing in the better strategy. (Do not round until the final answer. Then round to the nearest cent as needed.) of each period. Therefore, the formula should be used.
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