Question

You plan to save $360 per month starting today for the next 45 years "just to start the month off right." You feel that you can earn an interest rate of 9.8 percent compounded monthly. How much will there be in the account 45 years from today?

Answer 1

Answer:

$213451.2

Explanation:

9.8% of the savings monthly

9.8/100 X 360

35.28

total monthly savings = 360 + 35.28

= 395.28

So, for the next 45 years, total amount in account

= 45 X 12

= 540 months

Total account for 45 years

= 540 X 395.28

= $213451.2