Jessica deposits $5,000 at the end of each year in an account earning 2.45% interest, compounded annually. What is the future va
lue of this annuity after 5 years of investing?
Do I need to use the ordinary annuity formula or the annuity due formula to solve this?
Do I need to use the ordinary annuity formula or the annuity due formula to solve this?
1 answer:
Hi there
If the amount deposited at (end) of each year, use the formula of the (future/present) value of annuity ordinary
If the amount deposited at the (beginning) of each year use the formula of the (future/present) value of annuity due
So
FvAo=5,000×(((1+0.0245)^(5)−1)
÷(0.0245))
=26,255.38...answer
Hope it helps
If the amount deposited at (end) of each year, use the formula of the (future/present) value of annuity ordinary
If the amount deposited at the (beginning) of each year use the formula of the (future/present) value of annuity due
So
FvAo=5,000×(((1+0.0245)^(5)−1)
÷(0.0245))
=26,255.38...answer
Hope it helps
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Step-by-step explanation:
Since we are given the location of a maximum, it is convenient to use a cosine function to model the torque. The horizontal offset of the function will be 0.3 m, and the horizontal scaling will be such that one period is 1.2 m. The amplitude is given as 0.01 Nm.
The general form is ...
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Answer:
a) P(x) = 0.67
b) P(y) = 0.67
c) P(x=4) = 0.3325
d) P( x = 0 ) = 0.0039
e) The fact that the rise and fall of the stock market relies on market sentiments violates independence used in Binomial distribution and the years are independent
Step-by-step explanation:
A) The probability that the stock market will rise next year = P(x) = 0.67
assuming next year to be X
B) Probability that the stock market will rise the year after next year
= P(y) = 0.67 and this is because the probability is independent of that of the previous years
C) Probability that the stock market will rise in four of the next five years
= P(x=4) = 0.3325
D) probability that the stock market will rise in none of the next five years
= P( x = 0 ) = 0.0039
E) The fact that the rise and fall of the stock market relies on market sentiments violates independence used in Binomial distribution and the years are independent
