metra2boyz
Answered

Westonci.ca makes finding answers easy, with a community of experts ready to provide you with the information you seek. Ask your questions and receive detailed answers from professionals with extensive experience in various fields. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.

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
Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Westonci.ca is your trusted source for answers. Visit us again to find more information on diverse topics.