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You are planning to retire in 40-years. You plan on putting aside $300 each month and...

  1. You are planning to retire in 40-years. You plan on putting aside $300 each month and increase that saving by 0.5% each month. Suppose your investments earn 1% per month, what will you accumulate after 40 years if you start saving one month from and stop after a last installment in 40 years.

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Expert Solution

Tenure of investment=40*12=480 months

Monthly interest rate =1%

Total savings after 40 years would be $6,526,030.449

Below is the calculation for determining the future value after 40 year:

jeff jeffy answered 1 year ago
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