you will work for 40 years then you will retire. when yiu retire, you will make...

you will work for 40 years then you will retire. when yiu retire, you will make the first of 40 annual investments of $7549 in a fund. the fund is expected to return 9.9% per year, how much will you have on the day that you make your last deposit?

Solutions

Expert Solution

i Interest Rate - 0.099

P Installment Amount - 7549

n No. of Periods - 40

Future Value = 7549/0.099 [(1.099) ⁴⁰-1)]

=76, 252[42.6423]

=3251560.6596

Note: Rounded off to 4 decimals, Answer may differ due to rounding off.

If not rounded off $3,251,583.57

jeff jeffy answered 2 years ago

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