ou make $9,300 annual deposits into a retirement account that pays an APR of 9.9 percent compounded monthly. How large will your account balance be in 30 years

Acct. Balance in 30 years.

F = $1637953.99

Explanation:

EAR = [ (1 + (r/n)) ^n] - 1

Where EAR = effective annual rate

r = rate = 9.9% = 0.099

n = 12 monthly compounding interest

So therefore:

EAR = (1 + (.099/12)) ¹² - 1 = 0.1036 = 10.36%

To calculate how large the acct. Balance will be, we have

F = A*[ ((1 + i) ^n) - 1) / i]

Where f = future value of investment.

A = annual investment value = 9300

i = EAR =.1036

n = 30

F = 9300 * [ ((1 + 0.1036) ^30 - 1) / 0.1036]

F = $1637953.99