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(Future value of an annuity)Imagine that Homer Simpson actually invested the $100,000 he earned providing Mr. Burns entertainment 8 years ago at 9.5 percent annual

(Future value of an annuity)Imagine that Homer Simpson actually invested the

$100,000

he earned providing Mr. Burns entertainment

8

years ago at

9.5

percent annual interest and that he starts investing an additional

$2,000

a year today and at the beginning of each year for

5

years at the same

9.5

percent annual rate. How much money will Homer have

5

years from today?

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