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Mark deposits $1500 each month in a retirement plan paying 14% compounded monthly. How much will...

Mark deposits $1500 each month in a retirement plan paying 14% compounded monthly. How much will he have in the account after 26 years?
Answer = $

Solutions

Expert Solution

We can use the future value of the annuity formula:

Where,
FVA = Future Value of Annuity
A = Annuity or monthly deposits
i = rate of interest in decimal form (i.e 14% = 0.14)
n = number of years
a = number of payments in a year

Therefore,

Therefore, after 26 years the amount will be $4,666,841.01

jeff jeffy answered 2 years ago
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