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(1 point) You are planning for retirement. You find a bank that offers a savings account with an annual interest rate of 5% compounded continuously.
(1 point) You are planning for retirement. You find a bank that offers a savings account with an annual interest rate of 5% compounded continuously. You want to start with enough money in the account so that you can withdraw $50,000 each year and have exactly $0 in the account after 30 years. Assume that your money is withdrawn continuously. 1. How much money should you have in the account at the start of your retirement? Answer (in dollars): 2. Suppose you can't find a bank that gives interest and instead decide to just put all of your money into a piggy bank when you retire and draw $50,000 from it each year. (It's a big piggy bank!) How much money should you have in the piggy bank at the start of your retirement so that you have exactly $0 in the piggy bank 30 years later? Answer (in dollars)
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