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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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