find the value of the annuity.

a1=$7000 I=0.10 n=5

Question

find the value of the annuity.

a1=$7000   I=0.10  n=5

anonymous · Answer

@jim_thompson5910 I followed the steps  but when it comes to finding the value I dont get it. 

This is where I have gotten so far.

$$7000\frac{ (1 + 0.10)^5 - 1 }{ 0.10 }$$

jim_thompson5910 · Answer

assuming you're using the correct formula

anonymous · Answer

$$this is the formula I was told \to use: Sn = a1( \frac{ (1 + I)^n -1 }{ I })$$

jim_thompson5910 · Answer

$$\large 7000\frac{ (1 + 0.10)^5 - 1 }{ 0.10 }$$

$$\large 7000\frac{ (1.10)^5 - 1 }{ 0.10 }$$

$$\large 7000\frac{1.61051  - 1 }{ 0.10 }$$

$$\large 7000\frac{0.61051 }{ 0.10 }$$

$$\large 7000*6.1051$$

$$\large 42,735.70$$

anonymous · Answer

oh and round to the nearest cent

jim_thompson5910 · Answer

I think that's right. Does it say anything about when it's compounded?

anonymous · Answer

No it doesn't.

jim_thompson5910 · Answer

alright

jim_thompson5910 · Answer

oh and does it say anything about monthly payments?

anonymous · Answer

No it does not. The answer you gave me is correct. I just checked it :)

jim_thompson5910 · Answer

oh, just checking

not very good with finance problems lol

jim_thompson5910 · Answer

but glad it works out

anonymous · Answer

You've helped me so much though!!

jim_thompson5910 · Answer

glad to be of help