Sara Swangard wants to deposit $12,000 at the end of each year for 9 years into an

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Sara Swangard wants to deposit $12,000 at the end of each year for 9 years into an annuity.

a. Sara’s local bank offers an account paying 5% interest compounded annually. Find the final amount she will have on deposit.

b. Sara’s brother-in-law works in a bank that pays 3% compounded annually. If she deposits her money in this bank instead, how much money will she have in her account?

c. How much would Sara lose over 9 years by using her brother-in-law’s bank instead of her local bank?

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Calculus With Applications

ISBN: 9780321831101

10th Edition

Authors: Margaret L Lial, Raymond N Greenwell, Nathan P Ritchey

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Question Posted: Aug 24, 2023 08:29 AM

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Sara Swangard wants to deposit $12,000 at the end of each year for 9 years into an

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To solve this problem we can use the future value of an annuity formula FV Pmt 1 rn 1 r W...View the full answer

Calculus With Applications

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