Many persons prepare for retirement by making monthly contributions to a savings program. Suppose that $2,000 is

Question:

Many persons prepare for retirement by making monthly contributions to a savings program. Suppose that $2,000 is set aside each year and invested in a savings account that pays 10% interest per year, compounded continuously.
a. Determine the accumulated savings in this account at the end of 30 years.
b. In Part (a), suppose that an will be withdrawn from savings that have been accumulated at the EOY 30. The will extend from the EOY 31 to the EOY 40. What is the value of this if the interest rate and frequency in Part (a) do not change?
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