Maria and John decide to save for retirement with an annuity. Answer each of the following questions separately, showing all your work to reach each answer. Only round the final amount. A. Maria has found an annuity that pays 2.2% compounded monthly. If they made a deposit of $200 each month, a. what would be the total value of this annuity at the end of 30 years if the interest rate remains the same? b. how much interest will they have earned? B. John has found an annuity that pays 2.5% compounded semi-annually. If they made a deposit of $1,200 every six months, a. what would be the total value of this annuity at the end of 30 years if the interest rate remains the same? b. how much interest will they have earned?
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
Maria and John decide to save for retirement with an annuity.
Answer each of the following questions separately, showing all your work to reach each answer. Only round the final amount.
A. Maria has found an annuity that pays 2.2% compounded monthly. If they made a deposit of $200 each month,
a. what would be the total value of this annuity at the end of 30 years if the interest rate remains the same?
b. how much interest will they have earned?
B. John has found an annuity that pays 2.5% compounded semi-annually. If they made a deposit of $1,200 every six months,
a. what would be the total value of this annuity at the end of 30 years if the interest rate remains the same?
b. how much interest will they have earned?
Obtain the total value of the annuity at the end of 30 years using ordinary annuity future value formula,
![P[1+r)" -1]
Fv l-r} -1]
360
0.022
200|| 1+
12
-1
(::30×12 = 360)
0.022
12
= $101849.8437](https://content.bartleby.com/qna-images/answer/8875e6c7-5b89-4e8d-b439-e75c6d1133aa/d836976c-c6f6-4f9b-a735-1c0a3ec83383/m4hu5il.png)
A) b . Obtain the interest earned as,
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