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Troyanec [42]
3 years ago
11

Find the total in the account with the following facts monthly contributions =$180 employer matching 25% interest rate 4.99% yea

rs invested 38
Mathematics
1 answer:
algol133 years ago
4 0

Answer:

The amount that will be in the account after 38 years is $ 36811,05

Step-by-step explanation:

a)

For resolved this exercise used the next equation

R(1-(1 + i)--) Ap = ... (1)

Ap = Amount in account

R = Paid monthly

i = Monthly interest rate

t = Months for paid

Dates

i=- 2.05% 12 = 0,1708% = 0.0017

The interest is divided for 12 because is annual and the formula is mensual

t = 15yearsx12 = 180 months

             R = 220$

R(1-(1 + i)-) Ap =

220(1-(1 + 0.0017)-180) Ap = 0.0017

162,04 Ap=0.0017

Ap = 95321,855

The amount that will be in the account after 15 years is $ 95,321.85

b)

R(1-(1 + i)--) Ap = ... (1)

Ap = Amount in account

R = Paid monthly

i = Monthly interest rate

t = Months for paid

i=- 4,99% -= 0,415% = 0.0041

The interest is divided for 12 because is annual and the formula is mensual

t = 38yearsx12 = 456 months

             R = 180$

R(1-(1 + i)-) Ap =

Ap = 180(1-(1 + 0.0041) -456 0.0041

Ap = 36811,055

The amount that will be in the account after 38 years is $ 36811,05

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