Starting at age 25, you deposit $2000 a year into an IRA account for retirement. Treat the yearly deposits into the account as a continuous income stream. If money in the account eams 6%, compounded continuously, how much will be in the account 40 years later, when you retire at age 65? How much of the final amount is interest?

Starting at age 25, you deposit $2000 a year into an IRA account for retirement. Treat the yearly deposits into the account as a continuous income stream. If money in the account eams 6%, compounded continuously, how much will be in the account 40 years later, when you retire at age 65? How much of the final amount is interest?

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance

Section: Chapter Questions

Problem 4.8P

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