2. At the age of 25 years, Gil sat down to do some retirement planning. He decided to invest$10,000 in a stock mutual fund which had an average rate of return of 15% over the last ten years,and he felt it would continue to perform at about the same rate in the forese e able future. Howmuch will Gil have in the account when he retires at age 60 even if he never saves another dime?(use the continuous compounding formula)

We need to find amount accumulated.

Answered: 2. At the age of 25 years, Gil sat down…

Algebra and Trigonometry (6th Edition)

6th Edition

ISBN:9780134463216

Author:Robert F. Blitzer

Publisher:Robert F. Blitzer

ChapterP: Prerequisites: Fundamental Concepts Of Algebra

Section: Chapter Questions

Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...

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Similar questions

26. EMERGENCY CASH After working long days in her small business for years, Kaitlyn Plank was finally making money. Since she was still worried about emergencies, she decided to put $85,000 in an investment for 4 years. Find the future value if it earns (a) 2% per year compounded daily and (b) 4% per year compounded daily. (c) Then find the difference between the two.
25. CORPORATE SAVINGS Dayton Tires has $180,000 to invest for 1 year. Find the future value if it earns (a) 2% per year compounded daily and (b) 3% per year compounded daily. (c) Then find the difference between the two.
A company will need 1,500 barrels of fuel at the end of this month, and its needs will increase at the rate of 1% per month (12% compounded monthly.) The company plans to take advantage of a currently favorable price situation and purchase a 3-year supply of fuel. How many barrels should be purchased?
6, Calculate the future values for Dawn and Dave's investments. a. Dawn invests $2000 each year of 10 consecutive years, starting at age 25. Assume an 8% annual rate of return with annual compounding. After age 35 she no longer adds to the account, but the money continues to compound. What was Dawn's out-of-pocket amount? How much will Dawn have accumulated by age 65? b. Dave invests $2000 each year for 30 consecutive years, starting at age 35. Assume the same 8% annual rate of return with annual compounding. What was Dave's out-of-pocket amount? How much will Dave have accumulated by age 65? c. Who contributed the most out-of-pocket? Who made the most money?
In 10 years, Cindy wants her investment to reach $40000 for a down payment on a smallhome. She has three investment options:Plan A: 6% annual interest, compounded yearlyPlan B: 5% annual interest, compounded semi-annuallyPlan C: 4.5% annual interest, compounded monthlya)Calculate the present value of each option to determine the amount that Cindy would need to invest today to have her down payment in 10 years.b)Which plan should Cindy choose?
Directions: Solve the following problems. 1. Your mom decided to join their office cooperative (an organization owned and run by bits members who share profits and benefits) and agreed to contribute P 1,000 per month beginning in January 2019 which will earn 3% interest compounded monthly. How much will be the future value of your mom's contribution at the end of April 2019?

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