Question

1. (5 points) A veterinarian assistant deposits $45 at the end of each month into an account that earns 5% interest compounded monthly. Find the interest earned by the account after 4 years. Answer: 2. (5 points) Allatto Auto Repair believes that it will need new equipment in 10 years. The equipment will cost $26,000. How much should be invested today at 8% compounded quarterly, to yield the $26,000 in 10 years?

          1. (5 points) A veterinarian assistant deposits $45 at the end of each month into an account that earns 5% interest compounded monthly. Find the interest earned by the account after 4 years.
Answer:
2. (5 points) Allatto Auto Repair believes that it will need new equipment in 10 years. The equipment will cost $26,000. How much should be invested today at 8% compounded quarterly, to yield the $26,000 in 10 years?

1. (5 points) A veterinarian assistant deposits 45 at the end of each month into an account that earns 5% interest compounded monthly. Find the interest earned by the account after 4 years.
Answer:
2. (5 points) Allatto Auto Repair believes that it will need new equipment in 10 years. The equipment will cost26,000. How much should be invested today at 8% compounded quarterly, to yield the $26,000 in 10 years?

Added by Michael Z.

Elementary and Intermediate Algebra

Alan S. Tussy, R. David Gustafson 5th Edition

Instant Answer

Solved by Expert Sri K

02/12/2023

Step 1

Step 1: The future value of an ordinary annuity is given by: $$FV = P\dfrac{[(1 + i)^n - 1]}{i}$$ where: * $FV$ is the future value of the annuity * $P$ is the payment amount * $i$ is the interest rate per period * $n$ is the number of periods Show more…

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1. (5 points) A veterinarian assistant deposits $45 at the end of each month into an account that earns 5% interest compounded monthly. Find the interest earned by the account after 4 years. Answer: 2. (5 points) Allatto Auto Repair believes that it will need new equipment in 10 years. The equipment will cost $26,000. How much should be invested today at 8% compounded quarterly, to yield the $26,000 in 10 years?