question 3\njack and jill are saving for a rainy day and decide to put $50 away in their local bank every…

question 3\njack and jill are saving for a rainy day and decide to put $50 away in their local bank every year for the next twenty - five years. the local up - the - hill bank will pay them 7% on their account. if jack and jill put the money in the account faithfully at the end of every year, how much will they have in it at the end of twenty - five years? round your answer to the nearest dollar. (note, do not include the dollar sign in your answer.)\nplease enter an integer, decimal or e notation value.\n2 points

question 3\njack and jill are saving for a rainy day and decide to put $50 away in their local bank every year for the next twenty - five years. the local up - the - hill bank will pay them 7% on their account. if jack and jill put the money in the account faithfully at the end of every year, how much will they have in it at the end of twenty - five years? round your answer to the nearest dollar. (note, do not include the dollar sign in your answer.)\nplease enter an integer, decimal or e notation value.\n2 points

Answer

Explanation:

Step1: Identify the annuity - formula

We use the future - value of an ordinary annuity formula $F = A\times\frac{(1 + r)^{n}-1}{r}$, where $A$ is the annual payment, $r$ is the interest rate per period, and $n$ is the number of periods. Here, $A = 50$, $r=0.07$, and $n = 25$.

Step2: Calculate $(1 + r)^{n}$

$(1 + 0.07)^{25}=1.07^{25}\approx5.42743$.

Step3: Calculate $(1 + r)^{n}-1$

$5.42743-1 = 4.42743$.

Step4: Calculate $\frac{(1 + r)^{n}-1}{r}$

$\frac{4.42743}{0.07}\approx63.249$.

Step5: Calculate the future - value $F$

$F=50\times63.249 = 3162.45\approx3162$.

Answer:

3162