posted by .

A person deposits money into a retirement account, which pays 7% interest compounded continuously, at a rate of $1000 per year for 20 years. Calculate:

a. The balance of the account at the end of 20 years

b. the amount of money actually deposited into the account

c. the interest earned during the 20 years.

I think i know that for part a you use the integral to find the future value maybe, but i have no idea how to do b or c

  • Calc -

    compound interest formula is:


    As n approaches infinity, this formula becomes:


    for the 1st $1000 invested:

    for the 2nd $1000 invested:

    and so on for 20 years. The sum total of future values minus $20,000 deposited is the interest earned in the 20 years.

  • Calc -

    a.) $43,645.71

    b.) just do 1000*20 =20,000

    c.) a-b (43,645.71-20,000=23645.71)

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Math

    Please check my work, thank you If $7,800 is deposited into an account paying 6% interest compounded annually (at the end of each year), how much money is in the account after 2 years?
  2. math

    a bank account earns 7% annual interest compounded continuously. you deposit $10,000 in the account, and withdraw money continuously from the account at a rate of $1000 per year. a. write the differential equation for the balance, …
  3. geometry

    A person deposits $500.00 into a savings account and pays 5% annual interest that is compounded yearly. At the end of the 10 years how much money will be in the savings account ?
  4. Math

    Bermie deposited $ 4000 into an account that pays 45/a compounded quarterly during the first year. The interest rate on this account is then increased by o.2% each year. Calculate the balance in Bernie's account after three years.
  5. Economics

    Ben deposits $5000 now into an account that earns 7.5 percent interest compounded annually. He then deposits $1000 per year at the end of the first and second years. How much will the account contain 10 years after the initial deposit?
  6. differential equation

    If P(t) is the amount of dollars in a savings bank account that pays a yearly interest rate of r% compounded continuously ,then dP/dt=(r/100)(P) , t in years . Assume the interest is 5% annually ,P(0)=$1000 ,and no monies are withdrawn …
  7. Maths B

    Kate is thinking about investing $45000 for 5 years. She deposits her money into an account which earns interest paid quarterly at a rate of 3.99% p.a. After 1½ years, Kate withdraws her investment (including interest) and deposits …
  8. Finite Math and Applied Calculus

    Betty Sue sets up a retirement account. For the first 35 years, she deposits $500 at the end of each month into an account with an annual interest rate of 3.6%, compounded monthly. Then, she stops making monthly payments and transfers …

    If you put $2,000 in a savings account that pays 6% interest compounded continuously, how much money will you have in your account in 4 years?
  10. PLEASE HELP Math

    As a fringe benefit for the past 8 years, Colin's employer has contributed $50 at the end of each month into an employee retirement account for Colin that pays interest at the rate of 8%/year compounded monthly. Colin has also contributed …

More Similar Questions