(a) $429,440.97; (b) $431,200.96; (c) $425,729.59; (d) $424,351.12;
(e) $423,534.64
. Sam won $150,000 in the Michigan lottery and decides to invest the money for retirement in 20
years. Find the accumulated value for Sam’s retirement for each of his options:
(a) a certificate of deposit paying 5.4% compounded yearly
(b) a money market certificate paying 5.35% compounded semiannually
(c) a bank account paying 5.25% compounded quarterly
(d) a bond issue paying 5.2% compounded daily
(e) a saving account paying 5.19% compounded continuously
2 answers
a) 150,000 * 1.054^20 = 320,440.07 check
do the others the same way as I showed you in the previous problem below
do the others the same way as I showed you in the previous problem below