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William Carey will deposit $800 per month into his retirement account. How much will he have...

William Carey will deposit $800 per month into his retirement account. How much will he have after 35 years if he can earn an APR of 15 percent compounded monthly?

$11,741,744.13

$11,857,975.58

$11,968,646.27

$12,324,257.28

None of the Above

Solutions

Expert Solution

Given that,

William carey will deposit PMT = $800 per month in his retirement account for t = 35 years

interest rate earned r = 15% compounded monthly

So, account value after 35 years can be calculated using FV formula of annuity,

FV = PMT*((1+r/n)^(n*t) - 1)/(r/n) = 800*((1+0.15/12)^(12*35) - 1)/(0.15/12) = $11741744.13

Option A is correct.

jeff jeffy answered 2 years ago
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