The Olfert Contractors Inc are saving $958 very month in order to purchase a new paving machine in twelve years. Their saving certificates pay 6% compounded monthly. How much of the maturity value will be interest?

$39,782

Explanation:

The balance at the end of 12 years will be the annuity value after 12 years.

the appropricate formulat for the annuity is

PV = P ×  1 − (1+r)−n

 r

For  Olfert Contractors

PV is future value

P is $958

r is 6% or 0.06 % per year or 0.005 per month

n is 12 year or 144 compund periods

FV = 958 x 1-(1+0.005)144

 0.005

FV = 958 x (1-0.487626284)

 0.005

FV = 958 x 0.512373716/0.005

FV = 958 x 102. 2747

FV = 98, 170.00

Without the interest factor Olfert Contractors will contribute 958 per month for 12 years which will be

=958 x 12  x 12

=$137,952

The interest on maturity value will be

=$137,952 - $98,170

=$39,782

the answer is     d. in our global economy, most job growth will be in services, but manufacturing jobs will exist, too.

answer; property tax payment made in july and december;