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A woman decides to invest $5000 in an IRA CD at the end of each year for 10 years. If she makes these payments and the certificates all pay 6%, compounded annually, how much will she have at the end of the 10 years?

A woman decides to invest 5000 in an IRA CD at the end of each year for 10 years If she makes these payments and the certificates all pay 6 compounded annually class=


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[tex]\begin{gathered} P=\text{ \$5000},\text{ annuity} \\ i=6\text{ \%= 0.06, annually} \\ t=10\text{ years} \\ F=\text{?} \\ F=P(\frac{(1+i)^t-1}{i}) \\ F=5000(\frac{(1+0.06)^{10}-1}{0.06}) \\ F=65903.97 \\ \text{She will have \$65903.97 at the end of 10 years} \end{gathered}[/tex]

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