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jekas [21]
3 years ago
13

You are to make monthly deposits of $1,721 into a retirement account that pays 8 percent interest compounded monthly. If your fi

rst deposit will be made one month from now, how large will your retirement account be in 5 years?
Business
1 answer:
Gala2k [10]3 years ago
5 0

Answer:

FV= $126,585.60

Explanation:

Giving the following information:

Monthly deposit (A)= $1,721

Interest rate (i)= 0.08/12= 0.0067

Number of periods (n)= 12*5= 60 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= {1,721*[(1.0067^60) - 1]} / 0.0067

FV= $126,585.60

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