Joe Sullivan invests $9,000 at the end of each year for 20 years. The rate of interest Joe gets is 8 percent annually. The final value of Joe's investment at the end of the 20th year on this ordinary annuity

Question

slaaibak · Answer

$$FV = 9000 ({(1.08)^{20} -1 \over 0.08})$$

anonymous · Answer

what solution did you get

slaaibak · Answer

I'm not going to calculate that.  That's your job.

anonymous · Answer

i got 58.2605754

anonymous · Answer

or did i not set it up right

anonymous · Answer

Another way to calculate it, assuming compounding annually, and a $9000 input at the end of the twentieth year:$$A(20)=\sum_{k=1}^{20}9000(1.08)^{20-k}$$Or, if we assume continuous compounding,$$A_{cont}(20)=\sum_{k=1}^{20}9000e^{0.08(20-k)}$$

anonymous · Answer

what sloution did you get cause im lost

anonymous · Answer

Using the last equation, I got a little more than $427,000

anonymous · Answer

If you use the one above it, it will be a little less.

anonymous · Answer

ok thanks

anonymous · Answer

Using the formula given by slaaibak, or my first formula both give the same answer, a little less than $412,000.