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(6) Jessica deposits $8000 in an IRA that pays 5% interest compounded continuously. She intends to make continuous deposits at a rate of $3000 per year. How much will she have accumulated in 8 years?

(6) Jessica deposits $8000 in an IRA that pays 5% interest compounded continuously. She intends to make continuous deposits at a rate of $3000 per year. How much will she have accumulated in 8 years?

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Calculus (6) Jessica deposits $8000 in an IRA that pays 5% interest compounded continuously. She intends to make continuous deposits at a rate of $3000 per year. How much will she have accumulated in 8 years? (7) If you make continuous deposit of $40,000 per year without initial deposit into a saving account that pays 5% interest compounded continuously, how long will take to accumulate $400,000 in the account? (8) Jessica deposits $8000 in an IRA at 5% interest compounded continuously. She intends to make continuous withdraws at a rate of $2000 per year. (a) How much will she have accumulated in 4 years? (b) When will the account be completely depleted? (9) Joe makes an initial deposit of $40,000 into a saving account that pays 5% interest compounded continuously. If he wants to accumulate $400,000 in the account in 10 years, how much continuous yearly deposit he needs to make?
Transcribed Image Text:Calculus (6) Jessica deposits $8000 in an IRA that pays 5% interest compounded continuously. She intends to make continuous deposits at a rate of $3000 per year. How much will she have accumulated in 8 years? (7) If you make continuous deposit of $40,000 per year without initial deposit into a saving account that pays 5% interest compounded continuously, how long will take to accumulate $400,000 in the account? (8) Jessica deposits $8000 in an IRA at 5% interest compounded continuously. She intends to make continuous withdraws at a rate of $2000 per year. (a) How much will she have accumulated in 4 years? (b) When will the account be completely depleted? (9) Joe makes an initial deposit of $40,000 into a saving account that pays 5% interest compounded continuously. If he wants to accumulate $400,000 in the account in 10 years, how much continuous yearly deposit he needs to make?
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