Solve the problem.Saving for retirement.   The expression P(1 + r)n gives the amount of an...

Solve the problem.

Saving for retirement.   The expression P(1 + r)n gives the amount of an investment of P dollars invested for n years at interest rate r compounded annually. Long-term corporate bonds have had an average yield of 6.2% annually over the last 40 years (Fidelity Investments, www.fidelity.com).

a) Use the accompanying graph to estimate the amount of a $10,000 investment in corporate bonds after 30 years.

b) Use the given expression to calculate the value of a $10,000 investment after 30 years of growth at 6.2% compounded annually.

Figure for Exercise 105