Ask Question
Today, 14:14

You are planning to make monthly deposits of $370 into a retirement account that pays 9 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 35 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)

+2
Answers (1)
  1. Today, 16:36
    0
    Final Value = $733,755

    Explanation:

    Giving the following information:

    You are planning to make monthly deposits of $370 into a retirement account that pays 9 percent interest compounded monthly. Your retirement is in 35 years.

    Effective rate = 0.09/12 = 0.0075

    n = 35*12 = 420

    A = monthly deposit = 370

    We need to use the following formula of Final Value:

    FV = {A*[ (1+i) ^n-1]}/i

    FV = {370*[ (1.0075^370) - 1]}/0.0075 = $733,755
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “You are planning to make monthly deposits of $370 into a retirement account that pays 9 percent interest compounded monthly. If your first ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers