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As part of your retirement plan, you have decided to deposit $6,000 at the beginning of each year into an account paying 5% interest
As part of your retirement plan, you have decided to deposit $6,000 at the beginning of each year into an account paying 5% interest compounded annually. (Round your answers to the nearest cent.) (a) How much (in $) would the account be worth after 10 years? (b) How much (in $) would the account be worth after 20 years? (c) When you retire in 30 years, what will be the total worth (in $) of the account? (d) If you found a bank that paid 6% interest compounded annually rather than 5%, how much (in $) would you have in the account after 30 years? (e) Use the future value of an annuity due formula to calculate how much (in $) you would have in the account after 30 years if the bank in part (d) switched from annual compounding to monthly compounding and you deposited $500 at the beginning of each month instead of $6,000 at the beginning of each year.
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