Question

WEDNESDAY, FEBRUARY 26 This homework has two problems: Assume that the province cuts 10% of the budget of the University every year. Write down an equation which computes the total cut to the University n years from now and explain it. If you use notation, it must be defined. • Assume that you deposit $1000 into a retirement account that earns 5% annual interest compounded annually and has 2% in fees. You can assume that this means that you actually earn 3% in interest each year. After 30 years, what percent of your savings has been lost because of fees? This homework is due in class on Wednesday, March 4.

Answer 1

Answer :- Let p be the initial budget of - the university cut in first year = 10.). of P Remaining budget =p-top = P(1-16) Cut to budget after 2 years = 101. of PC-to) - P (1-10) Keraining =P(-to) - Po (i-to) -P (1-6) (1-o) - P()- je

Cut to budget after 3 years = 10%. Of P(1-6) - Box PC-to je Remeinling = P(i to je to pli boje = P(1-7°C1-to) =PC1-to)3 Cut to budget after 4 years = Of P (1-60). Lo of PC- Bojo continuing in this way cut to budget after n years - to PCI-to)"-) No-