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Question: Melinda Gibbs would like for her descendants to be able draw $40,000 every year for ever starting 30 years from now. She has found a mutual fund that will provide her a guaranteed 10% return forever. She will make ten equal deposits starting today. How much must be each of the ten uniform deposits?

1. If you had $2,000 now and invested it at 10% interest compounded annually, how much would it be worth in eight years?

2. If an amount invested 5 years ago has doubled, what is the annual interest rate?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M92599040

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