Melinda gibbs would like for her descendants to be able


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?

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: Melinda gibbs would like for her descendants to be able
Reference No:- TGS02585869

Expected delivery within 24 Hours