You are planning to make monthly deposits of $300 into a retirement account that pays 8 percent interest compounded monthly. If
your first deposit will be made one month from now, how large will your retirement account be in 25 years?
1 answer:
Answer:
The correct answer is $285.308.1
Explanation:
According to the scenario, computation of the given data are as follows:
Monthly payment (Pmt) = $300
Interest rate = 8%
Interest rate (monthly) (rate) = 8% ÷ 12 = 0.666667%
Time period = 25 years
Time period (monthly) (Nper) = 25 × 12 = 300
So, we can calculate the Future value by using Financial calculator.
The attachment is attached below:
Future value = $285,308.1
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