metra2boyz
Answered

Get the answers you need at Westonci.ca, where our expert community is always ready to help with accurate information. Discover precise answers to your questions from a wide range of experts on our user-friendly Q&A platform. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

Jolene set up a retirement account. She arranged to have $350 taken out of each of her monthly checks; the account will earn 2.1 % interest compounded monthly. She just turned 33 and her ordinary annuity comes to term when she turns 60. Find the value of her retirement account at that time

Sagot :

sqdancefan

Answer:

  $152,419.36

Step-by-step explanation:

The future value of an ordinary annuity is given by the formula ...

  FV = P((1 +r/12)^(12t) -1)/(r/12)

where P is the monthly payment, r is the annual interest rate, and t is the number of years.

Annuity value

For P = 350, r = 0.021, and t = 27 (years to retirement age), the value is ...

  FV = 350((1 +0.021/12)^324 -1)/(0.021/12) ≈ $152,419.36

The value of Jolene's retirement account when she turns 60 will be $152,419.36.

View image sqdancefan
Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Your questions are important to us at Westonci.ca. Visit again for expert answers and reliable information.