annuties and sinking found,

Question

A savings institution advertised "Invest $3000 a year for 10 years and we will pay you $3000 a year forever." The institution pays an 8% interest rate compounded annually. (a) Find the value of the investment after 10 years. (Round your final answer to two decimal places.)


(b) The investor ceases payment at the end of 10 years, and the investment firm pays $3000 at the end of each year. Will the interest on the investment (still 8%) provide for the $3000 annual payment?

The annual interest will make the $3000 payment. The annual interest will not make the $3000 payment.    

Answer 1

put in 3000$/yeer, 8j%, kompound 1/yeer, 10yeers

will hav 46,936.46$  (put up=30,000$)

******** part  b, bank klaem it will pae yu 3,000$/yeer from that munee

3000/6936=6.39%/yeer