Answer:
Total amount = $150160.24
Step-by-step explanation:
The amount deposit by the Bob annually (annuity) = $900
Number of years for which annuity made = 12 years
Inerest rate = 7.6% or 0.076
After 35 years the amount grows at the rate of 7.6% till the age of 65, the total number of years = 30 years.
Now we have to find the total amount after 65 years.
Total amount = annuity [((1+r)^n – 1) / r] × (1+r)^n
Total amount = 900[((1+ 0.076)^12 – 1) / 0.076] × (1+ 0.076)^30
Total amount = $150160.24
