Question

Calculate how much you would have in 25 years if you saved $3,000 a year at an annual rate of 9 percent with the company contributing $750 a year. Use Exhibit 1-B. (Round time value factor to 3 decimal places and final answer to the nearest whole dollar.)Future value $

Answer 1

Answer:

the amount have in 25 years is $317,628

Explanation:

The computation of the amount have in 25 years is shown below:

PMT = Payment saved per year

= $3,000 + $750

= $3,750.00

N = Periods of payment = 25 years

R = Rate = 9%

Now the formula is

FV = (PMT × ((1 + R)^N-1) ÷ (R)  

= $3,750 × ((1 + 9%)^25-1) ÷ (9%)

= $317,628

Hence, the amount have in 25 years is $317,628