Question
(a) Jessica deposits $8000 in an IRA that pays 5% interest compounded continuously. She intends to make continuous deposits at a rate of $3000
(a) Jessica deposits $8000 in an IRA that pays 5% interest compounded continuously. She intends to make continuous deposits at a rate of $3000 per year. How much will she have accumulated in 8 years? How long will it take to accumulate $10,000 in the account? (b) Jessica deposits $8000 in an IRA at 5% interest compounded continuously. She intends to make continuous withdraws at a rate of $2000 per year. How much will she have accumulated in 4 years? When will the account be completely depleted? (c) Joe makes an initial deposit of $40,000 into a saving account that pays 5% interest compounded continuously. If he wants to accumulate $400,000 in the account in 10 years, how much continuous yearly deposit he needs to make?
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Get StartedRecommended Textbook for
Government and Not for Profit Accounting Concepts and Practices
Authors: Michael H. Granof, Saleha B. Khumawala
6th edition
978-1-119-4958, 9781118473047, 1118155971, 1118473043, 978-1118155974
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