Question
a) If your savings account earns 6% per annum, compounded annually, how much do you have in your account at the end of 10 years
a) If your savings account earns 6% per annum, compounded annually, how much do you have in your account at the end of 10 years if you deposit $10,000 per year into the account?
b) How much will you have to deposit each year into his college fund account that pays an interest rate of 4% per annum, compounded annually, if at the end of 18 years, you want to have $200,000 in the account? (Round your answer to the nearest $100)
c) You decide to make monthly deposits into Junior's college fund account (the account pays interest at 4%), instead of annual deposits. How much must you deposit at the end of each month so that you will have $200,000 in the account by the time he turns 18? (Round to the nearest dollar.)
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a If your savings account earns 6 per annum compounded annually and you deposit 10000 per year into the account we can calculate the total amount in t...Get Instant Access to Expert-Tailored Solutions
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