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Calculator Solution

1. The first 30 years (60 periods) is a regular savings account:

Future Value, A = $128,922.66

1000 1.0235 60 1   .0235

Interest, I = $68,922.66

128922.66 1000 60

2. The last 20 years (40 periods) is like a loan:

Periodic Payment, M = 5,006.90

128922.66 .0235 1 1.0235 40

Interest, I = 71,353.34

5006.90 40 128922.66 

3. The total interest earned over the 50-year span is 68,922.66 + 71,353.34 = $140,276.00

APY = 4.755%

1.0235 2 1

Note: These solutions are shown for a TI-83 Plus calculator.