John teaches physics. He decides to write a series of 32 physics textbooks. Each one will take one year to write since it is not his main job. He signs a contract with a textbook publisher where he will be paid a guaranteed payment of $700 per year for the rights to sell each book for that year. (This means that the amount he receives will increase each year since there will be one extra book each year.) After writing the first 14 books, he decides to invest all of the future money from this contract in an account that has an interest rate of 3% that compounds annually. Since he has already written 14 books, the first payment to be deposited will be for $9800 and will be deposited one year from now. The deposit next year will be based on one extra book. Thus the second deposit into the account will be $10500, etc. There are 18 years (payments) remaining on the contract. How much money will be in the account at the end of the contract after the last payment has been deposited?

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To determine how much money will be in the account at the end of the contract we need to calculate t... View the full answer