You are planning to make monthly deposits of $300 into a retirement account that pays 8 percent interest compounded monthly. If

Question

3 years ago

7

your first deposit will be made one month from now, how large will your retirement account be in 25 years?

1 answer:

iVinArrow [24] · Answer 1 · 2022-04-04T13:40:15+03:00

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