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As part of your retirement plan, you have decided to deposit $ 9 , 0 0 0 at the beginning of each year into an
As part of your retirement plan, you have decided to deposit
$ at the beginning of each year into an account paying
interest compounded annually. Round your answers to the nearest
cent.a How much in $ would the account be worth after
years?b How much in $ would the account be worth after
years?c When you retire in years, what will be the total worth
in $ of the account?d If you found a bank that paid interest compounded
annually rather than how much in $ would you have in the
account after years?e Use the future value of an annuity due formula to calculate
how much in $ you would have in the account after years if the
bank in part d switched from annual compounding to monthly
compounding and you deposited $ at the beginning of
each month instead of $ at the beginning of each
year.
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