Question
You estimate you will need $5,000,000 for retirement in 45 years. First National bank is marketing an account that will pay 6.0% per year. First
You estimate you will need $5,000,000 for retirement in 45 years. First National bank is marketing an account that will pay 6.0% per year. First national and all the following guarantee the account terms for 45 years. a. How much money will you do you need to deposit in First Bank today, to achieve your goal. b. Second National promises to make quarterly interest payments that can be re-deposited with the same terms. That bank quotes 5.9% annual interest. Again, how much do you need to deposit today? c. Third National promises to make monthly interest payments that can be re-deposited with the same terms. That bank quotes 5.85% annual interest. Again, how much do you need to deposit today? d. Last national offers 5.84% but daily compounding. Again, how much do you need to deposit today?
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