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 willshe have accumulated in 8 years?(7) If you make continuous deposit of $40,000 per year without initial deposit into asaving account that pays 5% interest compounded continuously, how long will taketo accumulate $400,000 in the account?(8) Jessica deposits $8000 in an IRA at 5% interest compounded continuously. Sheintends 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% interestcompounded continuously. If he wants to accumulate $400,000 in the account in 10years, how much continuous yearly deposit he needs to make?

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Answered: (6) Jessica deposits $8000 in an IRA…

(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

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

Problem 1PS

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Question

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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