Use the formula developed in Exercise 39 to find the present value of the annuity in Exercise 5 . 5. On September 8, Bert Sarkis started an annuity. He arranged to have $75 deducted from his end-of- month paychecks. The money would earn 7% interest compounded monthly. a. Find the future value of the account on December 1 using an Amortization Formula. b. Find the future value of the account on December 1 by applying the Compound Interest Formula to each payment individually. c. Bert’s total contribution to the account. d. The total interest.
Use the formula developed in Exercise 39 to find the present value of the annuity in Exercise 5 . 5. On September 8, Bert Sarkis started an annuity. He arranged to have $75 deducted from his end-of- month paychecks. The money would earn 7% interest compounded monthly. a. Find the future value of the account on December 1 using an Amortization Formula. b. Find the future value of the account on December 1 by applying the Compound Interest Formula to each payment individually. c. Bert’s total contribution to the account. d. The total interest.
Solution Summary: The author calculates the present value of annuity using the formula of 222.40.
Use the formula developed in Exercise
39
to find the present value of the annuity in Exercise
5
.
5. On September 8, Bert Sarkis started an annuity. He arranged to have $75 deducted from his end-of- month paychecks. The money would earn 7% interest compounded monthly.
a. Find the future value of the account on December 1 using an Amortization Formula.
b. Find the future value of the account on December 1 by applying the Compound Interest Formula to each payment individually.
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