When your first child is born, you begin to save for college by depositing $600 per month in an account paying 12% interest per year. You increase the amount you save by 4% per year. With continuous investment and compounding, how much will you have accumulated in the account by the time your child enters college 18 years later?
a. $595,503.40
b. $68,676.50
c. $6,435.34
d. $5,955.03
e. $6,560,949.48
Find the total value of the given income stream and also find its future value (at the end of the given interval) using the given interest rate.
R(t) = 60,000 + 5,000r, 0 ≤ t ≤ 15, at 2%
a. TV = $337,500, FV = $426,341.33
b. TV = $1,462,500, FV = $1,672,811.52
c. TV = $1,181,250, FV = $2,698,674.28
d. TV = $1,462,500, FV = $4,672,811.52
e. TV = $3,262,500, FV = $30,732,682.42