Problem

How to Become a Millionaire Upon graduating from college, Sergei has no money. However, du...

How to Become a Millionaire Upon graduating from college, Sergei has no money. However, during each year after that, he will deposit d = $1,000 into an account that pays interest at a rate of 8% compounded continuously.

(a) Find the future value A(t) of Sergei’s account.

(b) Find the value for an annual deposit d that would produce a balance of one million dollars when he retires 40 years later.

(c) If d = $2,500, what should be the value of the interest rate r in order for Sergei’s balance to be one million dollars after 40 years?

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Solutions For Problems in Chapter 2.3