You will deposit $5000 into a retirement account that earns 3% interest compounded annually. You hope to retire in 25 years so you are depositing an additional $500 to the account each year. What is the future value? What are the total payments (additional deposits)? What will be the total interest paid to you?
You will deposit $5000 into a retirement account that earns 3% interest compounded annually. You hope to retire in 25 years so you are depositing an additional $500 to the account each year. What is the future value? What are the total payments (additional deposits)? What will be the total interest paid to you?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 24P
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- You will deposit $5000 into a retirement account that earns 3% interest compounded annually. You hope to retire in 25 years so you are depositing an additional $500 to the account each year. What is the future value? What are the total payments (additional deposits)? What will be the total interest paid to you?
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