Find the final amount in the following retirement account, in which the rate of return on...

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Find the final amount in the following retirement account, in which the rate of return on...

Find the final amount in the following retirement account, in which the rate of return on the account and the regular contribution change over time.

$344 per month invested at 4%,compounded monthly, for 6 years; then $779 per month invested at 6%, compounded monthly, for 6 years.

What is the amount in the account after 12 years?

math Statistics-And-Probability

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Answer 1

Answer #1

Regular Deposits.

$P_1=M_1\left ( \left ( 1+\frac{i_1}{q} \right )^{nq}-1 \right )\left ( \frac{q}{i_1} \right )$

After 6 years

Here $M_1=\$344,i_1=0.04,q=12,n=6$ .

笠,,- 1)(끊) 0.04 P, 344 | | 1 + 0.04 Р, = $27940.562

After 12 years

no no )72 )(da) A-2794 3242(1+0.쓸)72+779(0 +779 1 P2- 27940.562 1+ Ps $107,324.62

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Answer 2

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