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Javier is currently paying ​$1 comma 200 in interest on his credit cards annually.​ If, instead of paying​ interest, he saved this amount every​ year, how much would he accumulate in a​ tax-deferred account earning 9 percent over 9​, 14​, or 19 ​years?

Respuesta :

TomShelby

Answer:

after 9 years:

FV $15,625.2437

in 14 years:

FV $31,223.0270

last, at the nineteenth year:

FV $55,222.1501

Explanation:

We have to solve for the annuity of 1,200 dollar with a yield of 9% at the proposed times:

[tex]C \times \frac{(1+r)^{time}-1 }{rate} = FV\\[/tex]

C 1,200.00

time 9

rate 0.09

[tex]1200 \times \frac{(1+0.09)^{9} -1}{0.09} = FV\\[/tex]

FV $15,625.2437

time = 14

[tex]1200 \times \frac{(1+0.09)^{14}-1 }{0.09} = FV\\[/tex]

FV $31,223.0270

time = 19

[tex]1200 \times \frac{(1+0.09)^{19} -1}{0.09} = FV\\[/tex]

FV $55,222.1501

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