An individual entering the workforce plans to make monthly contributions to a retirement account in the amount of $250 beginning at the end of next month and continuing for the next 40 years. (a) If the retirement account earns 8% compounded monthly, find the amount expected in the retirement account at the end of 40 years. Round to the nearest penny. (b) If the retirement account charges a maintenance fee of 2% each year, the net interest rate earned by the retiree becomes 6%. Find the amount expected in the retirement. account. Round to the nearest penny. (c) Compare the answers from part (a) and part (b) above to determine the total percent lost by the retiree due to the fee. Round your answer to two decimal places. % lost
An individual entering the workforce plans to make monthly contributions to a retirement account in the amount of $250 beginning at the end of next month and continuing for the next 40 years. (a) If the retirement account earns 8% compounded monthly, find the amount expected in the retirement account at the end of 40 years. Round to the nearest penny. (b) If the retirement account charges a maintenance fee of 2% each year, the net interest rate earned by the retiree becomes 6%. Find the amount expected in the retirement. account. Round to the nearest penny. (c) Compare the answers from part (a) and part (b) above to determine the total percent lost by the retiree due to the fee. Round your answer to two decimal places. % lost
Chapter2: Solving Linear Equations
Section2.2: Use A Problem Solving Strategy
Problem 2.53TI: Eduardo noticed that his new car loan papers stated that with a 7.5% simple interest rate, he would...
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Transcribed Image Text:An individual entering the workforce plans to make monthly contributions to a retirement account in the amount of $250 beginning at the end of next month and continuing for the next
40 years.
(a) If the retirement account earns 8% compounded monthly, find the amount expected in the retirement account at the end of 40 years. Round to the nearest penny.
(b) If the retirement account charges a maintenance fee of 2% each year, the net interest rate earned by the retiree becomes 6%. Find the amount expected in the retirement
account. Round to the nearest penny.
(c) Compare the answers from part (a) and part (b) above to determine the total percent lost by the retiree due to the fee. Round your answer to two decimal places.
% lost
Transcribed Image Text:When Maria Acosta bought a car 2
12/2
years ago, she borrowed $16,000 for 48 months at 8.4% compounded monthly. Her monthly payments are $393.62, but she'd like to pay off the
21-yea
--year mark? (Round your answer to the nearest cent.)
loan early. How much will she owe just after her payment at the 2
$
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