Mathematics
Mathematics, 24.11.2020 04:40, allsherm23

Diego wonders how much money he could save over 25 years if he puts $150 a year into an account with 4% interest per year compounded annually . He calculates the following , but thinks he must have something wrong, since he ended up with a very small amount of money : total amount = 150 * (1 - 0.04 ^ 25)/0.96 = 156.25 What did Diego forget in his calculation ? How much should his total amount be? Explain or show your reasoning

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