If the total annual expense for this car is deposited at the end of each year into an IRA paying % compounded yearly, how much will be saved at the end of years? Use the formula

Explanation:

Find the table attached below:

a) According to the table, total average cost = $0.96/mile

If 20,000miles was driven in a year, the total annual expense for the car will be:

20,000×0.96 = $19,200

b) In order to know how much will be saved for 5 years at IRA of 8.2% compounded annually, we will use the formula

A = [P(1+r/n)^nt - 1]/r/n

P = $19200

r = 8.2%

n = 1 (annual compounding)

t = 5

Substitute

A = [19200((1+0.082/1)^1(5)- 1)/0.082

A = [19200{(1.082)^5 - 1}]/0.082

A = 19200(1.4829-1)/0.082

A = 19200(0.4829)/0.082

A = 9273.28/0.082

A = 113,088.8

Hence the amount after 5 years compounded annually is $113,088.8

because she sucked. : )

(but so does trump, don't @ me)

answer; consideration;