Answer:
(a) $300,000
(b) $1,132,750
Explanation:
Given:
Per year amount received = $10,000
Number of year = 30
Rate = 8% = 0.08
Total Additional amount :
Additional amount = $10,000 × 30 = $300,000
Future value:
Future value =[tex]PMT[\frac{(1+r)^n-1}{r} ][/tex]
[tex]10,000[\frac{(1+0.08)^{30}-1}{0.08} ]\\10,000[\frac{(1.08)^{30}-1}{0.08} ]\\10,000[\frac{10.062-1}{0.08} ]\\10,000[\frac{9.062}{0.08} ]\\10,000 \times113.275\\1,132,750[/tex]
Future value is $1,132,750
