Question
1. Your grandmother has invested $4000 in a mutual fund each year on your birthday (she made her first payment when you turned 1 year
1. Your grandmother has invested $4000 in a mutual fund each year on your birthday (she made her first payment when you turned 1 year old). The mutual fund has grown at an annual interest rate of 6.8%. How much is your account worth on the day of your 21st birthday immediately after your grandmothers deposit?
answer:
2. You set up a college fund in which you pay $4000 each year at the beginning of the year. How much money (in $) will you have accumulated in the fund after 26 years, if your fund earns 11% compounded annually?
answer:
3. You are planning your retirement and you come to the conclusion that you need to have saved $1000000 million in 30 years. You can invest into an retirement account that guarantees you a 14% annual return. How much do you have to put into your account at the end of each year to reach your retirement goal?
Answer:
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