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Suppose you invest $50000 in an annuity at the beginning of this year, and you add $1000 to the investment at the beginning of each
Suppose you invest $50000 in an annuity at the beginning of this year, and you add $1000 to the investment at the beginning of each successive year. The interest rate is 1.8% per annum, and interest is added annually, at the end of each year. (i) How much money will you have, to the nearest dollar, at the end of the third year (after the interest for that year has been added)? Dollars (ii) Write a general formula for how much money you will have at the end of year n (after the interest for that year has been added). -2+ + + X (iii) How much money will you have, to the nearest dollar, at the end of twenty years (after the interest for that year has been added)? Dollars
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