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lesantik [10]
3 years ago
7

you are planning to make monthly deposits of $140 into a retirement account that pays 13 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
Business
1 answer:
VashaNatasha [74]3 years ago
7 0

Answer:

FV= $314,365.69

Explanation:

Giving the following information:

Monthly deposti= $140

Number of months= 25*12= 300

Interest rate= 0.13/12= 0.01083

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

<u></u>

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

A= monthly deposit

FV= {140*[(1.01083^300) - 1]} / 0.01083

FV= $314,365.69

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