John and Rosamond want to retire in 15 years and can save $160 every three months....

Question

Question

John and Rosamond want to retire in 15 years and can save $160 every three months. They plan to deposit the money at the end

business finance

Answer 1

Answer #1

Information provided:

Quarterly saving= $160

Time= 15 years*3= 45 quarters

Interest rate= 7.72%/3= 2.5733% per quarter

The question is solved by calculating the future value.

Enter the below in a financial calculator to compute the future value:

PMT= 160

N= 75

I/Y= 2.5733

N= 45

Press the CPT key and FV to compute the future value.

The value obtained is 13,288.69.

Therefore, the amount at the end of 15 years is $13,288.69.

Answer 2

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