Andre was laid off after 25 years of service and received 15000 in severance pay. He invested it in a bond that earned 5.1% , compounded semi annually. He also started making monthly deposits of 80 into an account earning 2.95% compounded monthly. How much will his investments worth in 7 years when he turns 65?

## Step 1: Calculate the future value of the severance pay.### The severance pay of FV = PV(1 + \frac{r}{n})^{nt} FV PV r n t PV = 15000 r = 0.051 n = 2 t = 7 FV = 15000(1 + \frac{0.051}{2})^{2 \cdot 7} = 15000(1.0255)^{14} \approx 21275.79 80 into an account earning 2.95% annual interest compounded monthly for 7 years. We can use the future value of an ordinary annuity formula: , where is the future value, is the periodic payment, is the annual interest rate, is the number of times interest is compounded per year, and is the number of years. In this case, , , , and . ## Step 3: Calculate the total value of the investments.### To find the total value of Andre's investments, we add the future value of the severance pay and the future value of the monthly deposits.Total Value