In an effort to save money for early retirement, an environmental engineer plans to deposit $1200 per month starting one month f

Question

3 years ago

6

In an effort to save money for early retirement, an environmental engineer plans to deposit $1200 per month starting one month f

rom now, into a self-directed investment account that pays 8% per year compounded semiannually. How much will be in the account at the end of 25 years

Business

1 answer:

Aleks [24] · Answer 1 · 2022-06-27T09:12:05+03:00

Answer:

$1,099,203.00

Explanation:

In this question we have to find out the future value that is shown in the attachment below:

Provided that

Present value = $0

Rate of interest = 8% ÷ 2 = 4%

NPER = 25 years × 2 = 50 years

PMT = $1,200 × 6 months = $7,200

The formula is shown below:

= -FV(Rate;NPER;PMT;PV;type)

So, after solving this, the future value is $1,099,203.00