We are investigating two different retirment plans that we caninvest our money in. Plan A invests $45,000 with an annual interestrate of 4.8% compounded continuously, and plan B invests $50,000with an annual interest rate of 4.5%
Suppose we plan on retiring in 5 years. how much will plan A beworth at that time?
How much will Plan B be worth in 5 years?
Suppose instead we need at least $100,000 in this account weretire, and we don't plan on contributing any more to this account.(note that you actually need quite a bit more to retire, we'llassume that we have money in other accounts as well). How long willit take plan A to reach a balance of 100,000?
How long will it take plan B to reach a balance of $100,000?
Using your graphing calculator to graph the compound interestfunction for Plan A and the compund interest for Plan B using thewindow setting [0, 45] by [0, 400000]. Find the point ofintersection (rounded to two decimal places) between the twofunctions, and interpert it.
when would it make more sense to choose plan A? (hint: Whenwould plan A be worth more then plan B?)
When would it make more sense to choose Plan B?
Fine the T value of the point of interesction that you found in(what would it make more sense to choose Plan B) Algebraically.Show all work and incomplete solutions recieve no credit do notround answer til the end of this problem.
Please show all work for each one please Thank you so much!