Calculate account balance if rate decreased to four percent

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Problem 1: If you save money from the age of 20 and save $ 4 daily and, at the end of the year, all the savings you invest in a mutual fund account that has a 7% annual return, determine the balance of the account when you reach the 62 years.

Problem 2: Suppose the Land River Company decides to purchase a housing complex in 6 years and estimates that it can save $ 15,000 per year. The company deposits the money at the end of the year in World Central Bank at 5% interest. Calculate the balance after 6 years and calculate the account balance if the rate decreased to 4%.

Reference no: EM132965983

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