SOLUTION: 1.) A savings account in which people make regular payment amounts to save toward future goals like college or retirement is called an annuity. In the formula below, P is the regul
Question 1112473: 1.) A savings account in which people make regular payment amounts to save toward future goals like college or retirement is called an annuity. In the formula below, P is the regular payment amount, n is the number of times that interest is compounded per year (which is also the number of payments made per year), r is the annual interest rate, A is the future value of the annuity, and t is the number of years:
A(t)=P[1+r/n)^nt - 1]/r/n
Megan opens a savings account to pay for her new baby's college education. She deposits $200 every month into the account at an annual interest rate of 4.2% compounded monthly.
a.) Find A(t), the value of Megan's account after t years.
b.) What is the value of Megan's account after 8 years?
c.) What is the rate of change in the value of Megan's account after 8 years? Answer by ikleyn(52785) (Show Source): You can put this solution on YOUR website! .
After getting all these detailed explanations and instructions, all you need to do is to substitute the values into the formula
a) A(t) =
b) and then use your calculator and calculate the value A(8)
Is still something what you do not understand ?
This assignment is not about thinking.
It is about taking your calculator and pressing buttons, without asking questions.