## Saving for Retirement:

One way to fund retirement is to make periodic contributions to a savings account that provides positive returns. Suppose the periodic contribution is M and the account provides periodic return R, the value of the account after T periods is {eq}\sum_{t=1}^{T}{M(1 + R)^{T-t}}. {/eq}

a) in 30 years, there are 30*12 = 360 months. Effective monthly rate is 10%/12 = 0.83%. The value of the account after 30 years is...

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