Sally makes deposits into a retirement account every year from the age of 30 until she retires at age 65. a) if sally deposits $ 1000 per year and the account earns interest at a rate of 7 % per year, compounded annually, how much does she have in the account when she retires? b) how much of that total amount is from sally's deposits? how much is interest?

Use the annuity formula:

Total = P((1+i)^n-1 / i)

In the problem P = 1000 per year, i = 0.07 ( 7%), n = 65-30 = 35

W = 1000(1+0.07)^35 -1 / 0.07)

W = $138,237

Total amount in the account is $138,237

The amount she deposits is 1000 per year x 35 years = $35,000

Total interest is 138,237 - 35,000 = $103,237

the solution is the point

step-by-step explanation:

we have

> equation a

> equation b

adds equation a and equation b

substitute the value of x in equation b to find the value of y

the solution is the point