you plan to deposit $1,500 quarterly for 35 years at 7% interest, compounded monthly. how much will you have in the account in 3

Question

2 years ago

8

5 years?

1 answer:

VikaD [51] · Answer 1 · 2023-08-06T22:06:38+03:00

After 35 years, you will have $911,053.82 in the account.

This is based on a quarterly deposit of $1,500 per year for a period of 35 years at 7% interest, monthly compounded.

Data and Calculations:

Quarterly Deposit = $1,500

Number of years = 35 years

N (# of periods) = 140 (35 x 4)

I/Y (Interest per year) = 7% (0.583% per month)

PV (Present Value) = 0

Quarterly PMT (Periodic Payment) = 1500

P/Y (# of periods per year) = 4

C/Y (# of times interest compound per year) = 12

PMT made at the of each period

Results:

Future Value = $911,053.82

Sum of all periodic payments = $210,000.00 ($1,500 x 140)

Total Interest = $701,053.82 ($911,053.82 - $210,000)

Thus, after 35 years, the account will have a balance of $911,053.82.