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kvv77 [185]
3 years ago
7

If a person starts investing $100 per month starting at age 21, and that money earns a 5% return every year, how much will this

person have when turning 70 years old? For ease of calculation, assume starting balance of $0 and annual contributions of $1,200 (12*$100).
Business
1 answer:
Varvara68 [4.7K]3 years ago
6 0
The formula of the future value of an annuity ordinary isFv=pmt [((1+r)^(n)-1)÷r]Fv future value?PMT yearly payment 1200R interest rate 0.07N time 49 years (70-21)
Fv=1,200×(((1+0.07)^(49)−1)÷(0.07))Fv=454,798.80
Hope it helps!

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Answer:

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The unrealized loss of (800,000-750,000= $50,000) will be recorded in the accumulated other comprehensive income account under the equity section of the balance sheet.

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