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hodyreva [135]
3 years ago
14

You are now 20 years of age and decide to save $100 at the end of each month until you are 65. If the interest rate is 9.2%, how

much money will you have when you are 65?
Business
1 answer:
anyanavicka [17]3 years ago
5 0

Answer:

FV= $804,326.91

Explanation:

Giving the following information:

Monthly deposit (A)= $100

Interest rate (i)= 0.092/12= 0.0077

Number of periods= 45*12= 540 months

<u>To calculate the future value, we need to use the following formula:</u>

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit

FV= {100*[(1.0077^540) - 1]} / 0.0077

FV= $804,326.91

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