Question

# You are planning to make monthly deposits of $170 into a retirement account that pays 12... You are planning to make monthly deposits of$170 into a retirement account that pays 12 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 14 years?

For this question, n = 14 year * 12 = 168 months, r = 12%/12 = 1% (per month)

FV = 170 * 432.097

FV = $73,456.49 Answer #2 SOLUTION : Monthly compounding. Monthly deposit, A = 170 ($)

Monthly interest rate, r = 12/12 =1% = 0.01 in decimals

=> 1 = r = 1.01

Periods, n = 14 * 12 = 168 months

So,

FV after 14 years (168 months)

= A((1 + r)^n - 1) / r

= 170 * (1.01^168 - 1) / 0.01

#### Earn Coins

Coins can be redeemed for fabulous gifts.

Similar Homework Help Questions
• ### You are planning to make monthly deposits of $170 into a retirement account that pays 13... You are planning to make monthly deposits of$170 into a retirement account that pays 13 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 29 years? $683,947.36$618,809.51 $7,816,541.20$527,510.09 $651,378.43 • ### You are planning to make monthly deposits of$160 into a retirement account that pays 12...

You are planning to make monthly deposits of $160 into a retirement account that pays 12 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 24 years? A.$278,229.15 B. $251,731.14 C.$226,858.06 D. $264,980.14 E.$3,179,761.74

• ### You are planning to make monthly deposits of $490 into a retirement account that pays 10... You are planning to make monthly deposits of$490 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? b)  In the previous problem, suppose you make $3,600 annual deposits into the same • ### You are planning to make monthly deposits of$150 into a retirement account that pays 14...

You are planning to make monthly deposits of $150 into a retirement account that pays 14 percent interest compounded monthly. If your first deposit will be made one month from now, your retirement account will be worth$___in 15 years

• ### You are planning to make monthly deposits of $150 into a retirement account that pays 13... You are planning to make monthly deposits of$150 into a retirement account that pays 13 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 22 years? Multiple Choice $2,690,863.46$235,450.55 $213,026.69$189,883.81 $224,238.62 • ### You are planning to make monthly deposits of$100 into a retirement account that pays 7...

You are planning to make monthly deposits of $100 into a retirement account that pays 7 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 24 years? Multiple Choice$892,682.82 $69,812.00$70,670.72 $78,109.75$74,390.23