An amount of money P is invested in an account where interest is compounded at t

ID: 2961028 • Letter: A

Question

An amount of money P is invested in an account where interest is

compounded at the end of the period. The future worth F yielded at an interest rate i

after n periods may be determined from the following formula:

F = P*(1+i)^n

Modify your program to address the following problem. Rice student, John

worked in the cafeteria during summers and contributed $5000/year to his Roth

IRA during 4 years in Rice (age 18-21). He never contributed a dime to his

retirement account later. On the other hand, Jenna plans to contribute to her IRA

$10,000/year for 20 years from ages 40 to 59. Make a Matlab function or script to

compute how much each of them will have in their respective retirement account

at the age of 60. Assume the average annual interest rate of 8.5%. What if the

average interest rate was 12%?

An amount of money P is invested in an account where interest is compounded at t

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