To complete the table, we need to determine the formula to use and then fill in the account balance in 20 years and the total interest earned based on the given information about Joe and Susan’s contributions and the account's interest rate.
The appropriate formula for this scenario is the future value of an annuity because Joe and Susan are making regular annual contributions into an account that compounds interest annually.
From the given information, we know the values should be:
- Account Balance in 20 years: \$249,875 (this is the future value of the annuity)
- Total Interest Earned: \$99,875 (this is the difference between the future value of the annuity and the total contributions made over the 25 year period)
So the completed table should look like this:
\begin{tabular}{|l|l|l|}
\hline
Formula to Use & Account Balance in 20 years & Total Interest Earned \\
\hline
future value of an annuity & [tex]$\$[/tex] 249,875[tex]$ & $[/tex]\[tex]$ 99,875$[/tex] \\
\hline
\end{tabular}
These values have been calculated to show how much money Joe and Susan will have in their account after 25 years, and how much of that amount is due to interest earned on their contributions.
