1. calculate the difference of depositing $2000 every year

- April 30th 2006, 04:01 AMshirelcompound interest - retirement planning (growth function, analysis)
1. calculate the difference of depositing $2000 every year

- April 30th 2006, 09:52 AMThePerfectHackerQuote:

Originally Posted by**shirel**

The next year you increase the amount by .03 thus,

The next year you increase the amount by .03 thus,

=

The next year you increase the amount by .03 thus,

In general you have,

Thus, the amount you have at year 29 is,

- April 30th 2006, 09:58 AMThePerfectHackerQuote:

Originally Posted by**shirel**

BUT each year you subtract 30 dollars thus, the actual amount after years is,

while the other one does not thus nothing is subtracted thus, There difference is,

Open parantheses,

After forty year you have .

Thus, using the model which does not deduct payments you get 1200 more.