# Sara Swangard wants to deposit $12,000 at the end of each year for 9 years into an annuity. a. Saras

## Question:

Sara Swangard wants to deposit $12,000 at the end of each year for 9 years into an annuity.

a. Sara’s local bank offers an account paying 5% interest compounded annually. Find the final amount she will have on deposit.

b. Sara’s brother-in-law works in a bank that pays 3% compounded annually. If she deposits her money in this bank instead, how much money will she have in her account?

c. How much would Sara lose over 9 years by using her brother-in-law’s bank instead of her local bank?

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## Step by Step Answer:

**Related Book For**

## Calculus With Applications

**ISBN:** 9780321831101

10th Edition

**Authors:** Margaret L Lial, Raymond N Greenwell, Nathan P Ritchey

**Question Details**

Chapter #

**12**- Sequences and SeriesSection: Exercises 12.2

Problem: 31

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