you open a savings account to save for retirement. everymonth you put in $100 wh
ID: 1248858 • Letter: Y
Question
you open a savings account to save for retirement. everymonth you put in $100 which pays 8% interest compoundedmonthly. at the end of each year you recieve a $500 bonuswhich you place directly into your account. ? how much is in this account after 40 years? you open a savings account to save for retirement. everymonth you put in $100 which pays 8% interest compoundedmonthly. at the end of each year you recieve a $500 bonuswhich you place directly into your account. ? how much is in this account after 40 years?Explanation / Answer
40*12 = 480
?
40 years
Using Excel FutureValue function: Calculating Future Value of the SavingsAmount: Monthly Payment (PMT) $100 Interest rate Compounded Monthly(Rate) 8% Number of Years (Nper)40*12 = 480
Future Value (FV)?
Future Value of your savings $349,100.78 Calculating Future Value of the BonusAmount: Bonus Amount received (PMT) $500 Interest rate (Rate) 8% Number of years(Nper)40 years
Future Value of your bonus amount $129,528.26 Total Amount in your Account after 40years $478,629.04 ($349,100.78 + $129,528.26)Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.