Show your steps clearly. Write your justification as to why you will be using the formulas in
each step. It is due Dec. 14, 2018.
- Dan Hook deposits $400 a month to a retirement account that has interest rate of 3.1%,
compounded monthly. After making 60 deposits, Dan changes his job and stops making
payments for 3 years. After 3 years, he starts making deposits again, but now he deposits $525
monthly. What will the total value of the retirement accounts be
a. After Dan makes his $400 monthly deposit for five years?
b. Eight years after his first deposit of $400?
c. After Dan makes his $525 monthly deposits for 5 years?
Sample Solution