Tony, Mary, Andy and Jane each have a savings account that yields a 4% interest rate per year. Interest is paid out every December 31st for the money that was in the account December 31st the previous year. (a) On December 31st, 2017, Tony deposits €1000 into his account. To what amount will this deposit have grown by January 1st, 2023? (b) From 2017 on, Mary will deposit €1000 into her account on every last day of the year, for ten years (so her last deposit is on December 31st, 2026). What amount will be in her account on January 1st, 2028? (c) Andy will deposit €1000 into his account on every last day of the year, starting in 2017. He will continue until some January 1st, he has (more than) €25 000 in his account. In which year will this be? (d) On January 1st, 2038, Jane wants to have €20 000 in her account. What is the smallest amount she has to deposit every last day of the year for twenty years, starting on December 31st, 2017 to reach that €20 000?
Tony, Mary, Andy and Jane each have a savings account that yields a 4% interest rate per year. Interest is paid out every December 31st for the money that was in the account December 31st the previous year.
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(a) On December 31st, 2017, Tony deposits €1000 into his account. To what amount will this deposit have grown by January 1st, 2023?
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(b) From 2017 on, Mary will deposit €1000 into her account on every last day of the year, for ten years (so her last deposit is on December 31st, 2026). What amount will be in her account on January 1st, 2028?
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(c) Andy will deposit €1000 into his account on every last day of the year, starting in 2017. He will continue until some January 1st, he has (more than) €25 000 in his account. In which year will this be?
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(d) On January 1st, 2038, Jane wants to have €20 000 in her account. What is the smallest amount she has to deposit every last day of the year for twenty years, starting on December 31st, 2017 to reach that €20 000?
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