Question

use the ordinary annuity formula
$a = \frac{p\left\left(1 + \frac{r}{n}\
ight)^{nt} - 1\
ight}{\frac{r}{n}}$
to determine the accumulated amount in the annuity.

	periodic deposit	rate	time

after 35 years, you will have approximately $\square.
(round to the nearest cent as needed.)

Explanation:

Step1: Identify variable values

$P = 4000$, $r = 0.065$, $n = 1$, $t = 35$

Step2: Calculate exponent term

$nt = 1 \times 35 = 35$

Step3: Compute inside the brackets

$1 + \frac{r}{n} = 1 + \frac{0.065}{1} = 1.065$

Step4: Calculate power term

$(1.065)^{35} \approx 9.06266$

Step5: Subtract 1 from power result

$9.06266 - 1 = 8.06266$

Step6: Multiply by periodic deposit

$4000 \times 8.06266 = 32250.64$

Step7: Divide by $\frac{r}{n}$

$\frac{32250.64}{\frac{0.065}{1}} = \frac{32250.64}{0.065} \approx 496163.69$

Answer:

$\$496163.69$