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(1 point) You find a bank that offers a savings account with an annual interest rate of 4% compounded continuously. You start the account with
(1 point) You find a bank that offers a savings account with an annual interest rate of 4% compounded continuously. You start the account with $0. You plan to deposit a fixed amount of money each year. Assume that your money is deposited continuously. 1. How much money should you deposit each year so that after 40 years you have exactly $500,000 in the account? Answer (in dollars): 2. Suppose you can't find a bank that gives interest and instead decide to just put a fixed amount of money into your piggy bank each year. (It's a big piggy bank!) How much would you have to put in the piggy bank each year to have $500,000 after 40 years? Answer (in dollars)
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