Question
In: Finance
You are planning to make monthly deposits of $170 into a retirement account that pays 8...
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You are planning to make monthly deposits of $170 into a retirement account that pays 8 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 21 years? |
Solutions
Expert Solution
Future Value of Annuity= Annuity * [{(1+rate)^time period}-1]/rate
= $ 170 * [{(1+8%/12)^(21*12}-1]/(8%/12)
= $ 170*650.3587456
= $ 110,560.99
Answer = $ 110,560.99
jeff jeffy answered 2 years agoRelated Solutions
You are planning to make monthly deposits of $120 into a retirement account that pays 9...
You are planning to make monthly deposits of $120 into a
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from now, how large will your retirement account be in 19
years?
rev: 09_17_2012
Multiple Choice
$71,900.73
$75,495.77
$66,266.58
$68,305.69
$862,808.76
You are planning to make monthly deposits of $70 into a retirement account that pays 14...
You are planning to make monthly deposits of $70 into a
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large will your retirement account be in 22 years?
$128,355.75, $1,466,922.82, $116,131.39, $122,243.57,
$101,166.24
1-Calculating Annuity Future Values. You are planning to make monthly deposits of $475 into a retirement...
1-Calculating Annuity Future Values. You are
planning to make monthly deposits of $475 into a retirement account
that pays 10 percent interest compounded monthly. If your first
deposit will be made one month from now, how large will your
retirement account be in 30 years?
2-Calculating Annuity Future Values. In the
previous problem, suppose you make $5,700 annual deposits into the
same retirement account. How large will your account balance be in
30 years?
Suppose an investor plans to make monthly deposits into an account that pays 9% interest, compounded...
Suppose an investor plans to make monthly deposits into an
account that pays 9% interest, compounded monthly, so that $100,000
will be in the account immediately after the payment at the end of
Year 10. The first payment will occur at the end of Month 1 (one
month from the present). How much must be deposited monthly?
A.
$517 per month
B.
$9,670 per month
C.
$6,580 per month
D.
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You plan to make monthly deposits of $1,000 into an account at the beginning of each...
You plan to make monthly deposits of $1,000
into an account at the beginning of each month for
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final balance be by the end of 12 years? Round to the nearest cent.
[Hint: Beginning of period monthly cash flows!]
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You plan to make monthly deposits of $1,000 into an account at
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You currently have $55,000 in your retirement account. You will make deposits of $11,000/year into your account...
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Laquita deposits $5500 in her retirement account every year. If her account pays an average 6%...
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cash flow diagram and solve NOT with excel but with the interest
rate formula equations!!!
You make deposits of $400 at the beginning of every month, into an account paying 8%...
You make deposits of $400 at the beginning of
every month, into an account paying 8% interest compounded monthly.
The value at the end of 15 years is:
a.136,338
b.137,338
c.138,338
d.139,338
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