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tra Credit Problem: Suppose Victor smokes 4 packs of cigarettes a week. Do/answer the following: A. If the cigarettes that Victor smokes cost $3.64 a
tra Credit Problem: Suppose Victor smokes 4 packs of cigarettes a week. Do/answer the following: A. If the cigarettes that Victor smokes cost $3.64 a pack, then how much money will Victor spend on cigarettes for the next 46 years? Assume that the price of the pack of cigarettes and the number of packs of cigarettes that Victor smokes a week remains constant for the next 46 years. Show in detail how you arrived at your answer. (2 points) B. Victor has decided to quit smoking and invest the money (that he normally spends on cigarettes) at the end of each week into an increasing annuity that earns 1.61% interest compounded weekly. Find the amount of money Victor would have in the account at the end of 46 years using the appropriate formula. Show in detail how you arrived at your answer. (3 points) C. Find the total amount of interest that Victor would earn during the 46 years of investing his cigarette money into the increasing annuity described in part b. Show in detail how you arrived at your answer. (2 points)
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