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The bank offers special savings accounts that give continuously compounding interest with interest rates corresponding to different plans. (a) You want the value looking ahead
The bank offers special savings accounts that give continuously compounding interest with interest rates corresponding to different plans. (a) You want the value looking ahead 5 years of your account to be 100,000 dollars, but you only have 80,000 dollars today. What interest rate do you need the bank to offer to accomplish this? Answer: (b) You decide to take the mattress investment plan which offers a devastating 0% interest. If you contribute to your account at a constant 5000 dollars per year, then what is the accumulated future value of your account after 10 years. Answer: (c) Your friend decides to take the "better investment plan which offers 10% interest. If they contribute to their account at a non-constant rate of 2000e to dollars per year, then what is the accumulated future value of their account after 10 years. Answer: (d) Your brother decides to also use the "better" investment plan which offers 10% interest. He contribute a one time deposit of 20,000 dollars. What is the future value of his account after 10 years? Answer: (e) Your mother decides on the "best" investment plan which offers 25% interest. She contributes a non-constant 3000 dollars per year. What is the accumulated present value of her account after 10 years
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