Final answer:
Norm will have approximately $10,899.09 after 25 years and will have earned approximately $7,399.09 in interest.
Step-by-step explanation:
To find how much Norm will have after 25 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final amount
P = the principal amount (initial investment)
r = annual interest rate (as a decimal)
n = number of times interest is compounded per year
t = number of years
In this case, Norm invests $3,500 at the end of every year, so the principal amount is $3,500.
The annual interest rate is 5.762% (or 0.05762 as a decimal).
Since the interest is compounded annually, n is 1.
And t is 25 years.
Plugging these values into the formula, we get:
A = 3500(1 + 0.05762/1)^(1*25)
A = 3500(1 + 0.05762)^25
A ≈ $10,899.09
Therefore, after 25 years, Norm will have approximately $10,899.09.
To find how much interest Norm will have earned, we can subtract the initial investment from the final amount:
Interest = A - P
Interest = $10,899.09 - $3,500
Interest ≈ $7,399.09
Therefore, Norm will have earned approximately $7,399.09 in interest after 25 years.