1. calculate the difference of depositing $2000 every year
In year twenty you have,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,
Do not really understand what you are trying to say. Anyway Using the same technique I said above, you have after years,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.