Problem

Your Financial Future After college you have no money, but you begin to create a retiremen...

Your Financial Future After college you have no money, but you begin to create a retirement account by making continuous deposits that total d = $5,000 per year. Suppose that the account pays interest at an annual rate of 8% compounded continuously. Use a computer or calculator to plot the future value of your account over the next 20 years. Experiment by changing the interest rate and the annual deposits. Which parameter is more important to the future value of your account? To increase your future worth, is it more important to increase your annual deposit or to find an institution that pays a higher rate of interest?

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Solutions For Problems in Chapter 2.3