Use the equation from earlier Exercises to calculate the following. (Source: Adapted from Garman/Forgue, Personal Finance, Eighth Edition)

The future value of $1200 saved each year for 10 years earning 7% interest.


Answered 8 months ago
Answered 8 months ago
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To solve this problem, we have to use the formula for the future value given by:

future value=ert10t1f(t)ertdt\text{future value}=e^{rt_1}\int_0^{t_1}f(t)e^{-rt}dt

where f(t)f(t) represents a continuous investment over a period of t1t_1 years and rr represents the annual interest rate.

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