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?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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What is the value of the IRA when you turn 65?
(Round to the nearest dollar as needed.)
How much of the future value is interest?
9
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?
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December 5, 2022 at 8:28 AM
(Round to the nearest dollar as needed.)
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