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You are planning to make monthly deposits of $170 into a retirement account that pays 8...

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 ago
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