Question
Suppose someone wants to accumulate $120 000 for retirement in 30 years. The person has two...
Suppose someone wants to accumulate $120 000 for retirement in 30 years. The person has two choices. Plan A is a single deposit into an account with annual compounding and an APR of 6%. Plan B is a single deposit into an account with continuous compounding and an APR of 5.5%. How much does the person need to deposit in each account in order to reach the goal?
The person must deposit $ ____ into the account for Plan A to reach the goal of $120 000. (Round to the nearest cent as needed.)
The person must deposit $ _____into the account for Plan B to reach the goal of $120 000. (Round to the nearest cent as needed.)
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