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?

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter6: Saving And Investing

Section6.1: Why Save?

Problem 6R

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