Chapter 6.2, Problem 46E

Suppose in Problem 45 that you start the IRA deposits at age 30, but the account earns 6%, compounded continuously. Treat the yearly deposits into the account as a continuous income stream. How much will be in the account 35 years later when you retire at age 65? How much of the final amount is interest?

45. Starting at age 25, you deposit $2,000 a year into an IRA account. Treat the yearly deposits into the account as a continuous income stream. If money in the account earns 5%, 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?