Alexander is setting up a retirement account. If the interest rate is 6.15% compounded monthly, then...

Alexander is setting up a retirement account. If the interest rate is 6.15% compounded monthly, then after making 40 years of monthly payment of $1,200 into the account at the end of each month, then he will have $_________ in the account. Using the TVM Solver, the value for PV= _______ and the value for PMT= _______. At the end of the 40 years, the total interest that Alexander will have earned would be $________.

Solutions

Expert Solution

The total interest earned = Accumulated Value - PV

=$2489329 - $214016

= $2275313

Alexander is setting up a retirement account. If the interest rate is 6.15% compounded monthly, then after making 40 years of monthly payment of $1,200 into the account at the end of each month, then he will have $ 2489329  in the account. Using the TVM Solver, the value for PV=214016  and the value for PMT= _1200. At the end of the 40 years, the total interest that Alexander will have earned would be $__2275313______.

orchestra answered 1 year ago

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