Explore BrainMass
Share

Explore BrainMass

    Identify the functional relationship of her balance on-account over time.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    A friend wants to know how much money she will have at retirement if she invests $10,000 compounded continuously in a security that earns interest at ten percent per year. Identify the functional relationship of her balance on-account over time.

    a) Compute the retirement balance if my friend is currently 50 yrs old and retires in exactly ten years.

    b) Graph the balance on account against time and discuss or identify the effective yield of her security. How much does she earn on average in the fifth year? What's the instantaneous rate?

    c) If I find a higher yielding security paying 12(twelve) percent but compounded quarterly should she reconsider? Define the effective yield and compare this figure to the average rate of change.

    © BrainMass Inc. brainmass.com October 10, 2019, 3:47 am ad1c9bdddf
    https://brainmass.com/math/calculus-and-analysis/calculus-retirement-plans-435401

    Attachments

    Solution Preview

    ** Please see the attached files for the complete solution response **

    I'm attaching the solution in .doc and .pdf formats.

    a) Compute the retirement balance if my friend is currently 50 yrs old and retires in exactly ten years.
    We have (please see the attached file) So the retirement balance in ten years will be: (please see the attached file)

    b) Graph ...

    Solution Summary

    This solution provides step-by-step instruction on how to solve the given calculations regarding a woman's retirement plans.

    $2.19