Determine the accumulated savings in account

Reference no: EM131505858

Question: Many persons prepare for retirement by making monthly contributions to a savings program. Suppose that $2,000 is set aside each year and invested in a savings account that pays 10% interest per year, compounded continuously.

a. Determine the accumulated savings in this account at the end of 30 years.

b. In Part (a), suppose that an annuity will be withdrawn from savings that have been accumulated at the EOY 30. The annuity will extend from the EOY 31 to the EOY 40. What is the value of this annuity if the interest rate and compounding frequency in Part (a) do not change?

Reference no: EM131505858

Questions Cloud

What is the aw method : A company is considering constructing a plant to manufacture a proposed new product. The land costs $300,000, the building costs $600,000.

What percent of annual life-cycle cost is related to fuel : A 50-kilowatt gas turbine has an investment cost of $40,000. It costs another $14,000 for shipping, insurance, site preparation, fuel lines.

What is the simple payback period for the plant : Combined-cycle power plants use two combustion turbines to produce electricity. Heat from the first turbine's exhaust is captured to heat water and produce.

The rise of conservatism in the part of the 20th century : Explain at least one way in which the rise of conservatism had a positive or negative impact for a specific group of Americans.

Determine the accumulated savings in account : Many persons prepare for retirement by making monthly contributions to a savings program. Suppose that $2,000 is set aside each year and invested in a savings.

Why is gun issue be linked to incidences of mass shootings : Why is the gun issue be linked to incidences of mass shootings and not to a more general understanding of gun deaths in the US?

What is the total mortgage-related amount of javier : Javier just bought a condominium in College town, USA. His $100,000 mortgage is 6% compounded monthly, and Javier will make monthly payments on his loan.

The roman empire had to do with the rise of christianity : The shift that occurred in the Roman Empire had to do with the rise of Christianity and its widespread acceptance.

The paleolithic period : The Paleolithic period, also known as the Old Stone Age, developed in the early B.C.E. Many of their art pieces were discovered in caves.

User Account

All Pages