6. Suppose a person is saving for retirement by depositing equal amounts every quarter into a retirement plan to earn 9% annual interest com- pounded quarterly. If the account initially had zero balance, (i) How much will be available at retirement time in 25 years if each 40 Mathematical Modeling: Models, Analysis and Applications deposit is Rs. 10,000.00? (ii) How much should each deposit be to have Rs. 2,000,000.00 at retire- ment in 25 years?

College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
Chapter6: Exponential And Logarithmic Functions
Section: Chapter Questions
Problem 5RE: A retirement account is opened with an initialdeposit of 8,500 and earns 8.12 interest compounded...
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6. Suppose a person is saving for retirement by depositing equal amounts
every quarter into a retirement plan to earn 9% annual interest com-
pounded quarterly. If the account initially had zero balance,
(i) How much will be available at retirement time in 25 years if each
40
Mathematical Modeling: Models, Analysis and Applications
deposit is Rs. 10,000.00?
(ii) How much should each deposit be to have Rs. 2,000,000.00 at retire-
ment in 25 years?
Transcribed Image Text:6. Suppose a person is saving for retirement by depositing equal amounts every quarter into a retirement plan to earn 9% annual interest com- pounded quarterly. If the account initially had zero balance, (i) How much will be available at retirement time in 25 years if each 40 Mathematical Modeling: Models, Analysis and Applications deposit is Rs. 10,000.00? (ii) How much should each deposit be to have Rs. 2,000,000.00 at retire- ment in 25 years?
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