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.<br />### The severance pay of $15000 is invested at a 5.1% annual interest rate compounded semi-annually for 7 years. We can use the future value formula: $FV = PV(1 + \frac{r}{n})^{nt}$, where $FV$ is the future value, $PV$ is the present value, $r$ is the annual interest rate, $n$ is the number of times interest is compounded per year, and $t$ is the number of years. In this case, $PV = 15000$, $r = 0.051$, $n = 2$, and $t = 7$.<br />$FV = 15000(1 + \frac{0.051}{2})^{2 \cdot 7} = 15000(1.0255)^{14} \approx 21275.79$<br /><br />## Step 2: Calculate the future value of the monthly deposits.<br />### Andre makes monthly deposits of $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: $FV = P \frac{(1 + \frac{r}{n})^{nt} - 1}{\frac{r}{n}}$, where $FV$ is the future value, $P$ is the periodic payment, $r$ is the annual interest rate, $n$ is the number of times interest is compounded per year, and $t$ is the number of years. In this case, $P = 80$, $r = 0.0295$, $n = 12$, and $t = 7$.<br />$FV = 80 \frac{(1 + \frac{0.0295}{12})^{12 \cdot 7} - 1}{\frac{0.0295}{12}} = 80 \frac{(1.00245833)^{84} - 1}{0.00245833} \approx 80 \frac{1.2264 - 1}{0.00245833} \approx 80 \cdot 92.06 \approx 7364.80$<br /><br />## Step 3: Calculate the total value of the investments.<br />### 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.<br />Total Value $= 21275.79 + 7364.80 = 28640.59$