cid:4820274& Math2412 PreCalculus Winter -Mini michael rodriguez 1 1/14/18 8:55

Question

cid:4820274& Math2412 PreCalculus Winter -Mini michael rodriguez 1 1/14/18 8:55 PM Homework: Section 11.3 Homework Score: 0 of 1 pt 11.3.91 Sav 27 of 31 (28 complete) Hw Score: 69.41%, 21.52 of 31 ; Question Help Don contributes $300 at the end of each quarter to a Tax Sheltered Annuity (TSA). What will the value of the TSA be after the 80th deposit (20 years) the per annum rate of return is assumed to be 8% compounded quarterly? Enter the value of the TSA after the 80th deposit. S (Round to the nearest cent as needed) Enter your answer in the answer box and then click Check Answer. Clear A All parts showing DOLL

Explanation / Answer

applying future value of annuity formula

FV = P [ ( 1+r)^n -1 / r ]

P = 300

r = .08/4 = 0.02

n = 20*4 = 80

plugging the values

FV = 300 [ ( 1 + .02 ) ^ 80 -1 / 0.02]

= 58131.59

value of TSA after 80th deposit = $ 58131.59

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