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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

Respuesta :

Zviko

Answer:

$1,107,639.08

Explanation:

The amount in future of the dollar invested today is known as the Future Value (FV) . We compound the payments or principle amount to determine the future value using the effective interest.

Using a financial calculator, this can simply be calculated as follows :

PMT = - $490

P/YR = 12

I = 10 %

N = 30 x 12 = 360

PV = $ 0

FV = ??

The Future Value (FV) is $1,107,639.08

therefore

The retirement account will be  $1,107,639.08 in 30 years

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