Find the common ratio r for the given infinite geometric sequence.
-A sequence of yearly payments of $3000 is invested at an interest rate of 1.5%, compounded annually. What is the total amount of the annuity after 9 years?
A) $28,178.00
B) $29,678.00
C) $28,678.00
D) $27,678.00

Question

Quizplus · Accepted Answer

The total amount of an annuity can be calculated using the formula for the future value of an annuity: $A = P \frac{(1 + r)^n - 1}{r}$, where $A$ is the amount, $P$ is the payment, $r$ is the interest rate per period, and $n$ is the number of periods. Here, $P = 3000$, $r = 0.015$ (1.5%), and $n = 9$. Plugging these values into the formula gives the total amount as approximately $28,678.00.

Find the Common Ratio R for the Given Infinite Geometric