6. 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 be worth in 7 years, when he turns $65 ?$ ( 3 marks)
Answer
\(\boxed{28,793.84}\) is the total worth of Andre's investments in 7 years when he turns 65
Step 1 ：Calculate the future value of the bond investment: \(FV = P(1 + r)^n\) where \(P = 15000\), \(r = 0.0255\), and \(n = 14\)
Step 2 ：Calculate the future value of the monthly deposits using the formula: \(FV = PMT\frac{(1 + r)^n - 1}{r}\) where \(PMT = 80\), \(r = 0.002458333\), and \(n = 84\)
Step 3 ：Add the future values of both investments to find the total worth in 7 years: \(FV_{total} = FV_{bond} + FV_{monthly}\)
Step 4 ：\(\boxed{28,793.84}\) is the total worth of Andre's investments in 7 years when he turns 65
