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8 months ago
 Find the final amount in the following retirement​ account, in which the rate of return on the ... Find the final amount in the following retirement​ account, in which the rate of return on the account and the regular contribution change over time.$247 per month invested at 6%, compounded monthly, for 5 years; then$651 per month invested at %7, compounded monthly, for 5 years. what is the amount in the account after 10 years? ​(Do not round until the final answer. Then round to the nearest dollar as​ needed.) Read 59 times 1 Reply
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8 months ago
 I think here you do the annuity thing twice, then add them:$$A=\frac{R\left[\left(1+\frac{r}{n}\right)^t−1\right]}{\frac{r}{n}}$$1stA = future value amountR = regular deposit/payment  $$\rightarrow$$ 247r = interest rate $$\rightarrow$$ 6% or 0.06n = compounding periods per year $$\rightarrow$$ 12t = total number of deposits $$\rightarrow$$ 12 * 5 = 602ndA = future value amountR = regular deposit/payment  $$\rightarrow$$ 651r = interest rate $$\rightarrow$$ 7% or 0.07n = compounding periods per year $$\rightarrow$$ 12t = total number of deposits $$\rightarrow$$ 12 * 5 = 60$$A_T=\frac{247\left[\left(1+\frac{0.06}{12}\right)^{60}−1\right]}{\frac{0.06}{12}}+\frac{651\left[\left(1+\frac{0.07}{12}\right)^{60}−1\right]}{\frac{0.07}{12}}$$$$A_T=17233.19754+46606.97897$$$$A_T=63840.176$$Round to nearest cent:$$A_T=63840.18$$
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