As part of your retirement plan, you have decided to deposit $6,000 at the beginning of each year into an account paying 3% interest compounded annually. (Round your answers to the nearest cent.) (a) How much (in $) would the account be worth after 10 years? $   (b) How much (in $) would the account be worth after 20 years? $   (c) When you retire in 30 years, what will be the total worth (in $) of the account? $

College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
Chapter9: Sequences, Probability And Counting Theory
Section9.4: Series And Their Notations
Problem 56SE: To get the best loan rates available, the Riches want to save enough money to place 20% down on a...
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As part of your retirement plan, you have decided to deposit $6,000 at the beginning of each year into an account paying 3% interest compounded annually. (Round your answers to the nearest cent.)
(a)
How much (in $) would the account be worth after 10 years?
$  
(b)
How much (in $) would the account be worth after 20 years?
$  
(c)
When you retire in 30 years, what will be the total worth (in $) of the account?
$  
(d)
If you found a bank that paid 6% interest compounded annually rather than 3%, how much (in $) would you have in the account after 30 years?
$  
(e)
Use the future value of an annuity due formula to calculate how much (in $) you would have in the account after 30 years if the bank in part (d) switched from annual compounding to monthly compounding and you deposited $500 at the beginning of each month instead of $6,000 at the beginning of each year.
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