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You are planning to make annual deposits of $5,700 into a retirement account that pays 10 percent interest compounded monthly. How large will your account balance be in 30 years

Respuesta :

Zviko

Answer:

$12,884.78

Explanation:

The amount in Future for the dollar invested today is referred as the Future Value. We determine the Future Value by compounding the Principle amount using the effective interest rate.

We can simply calculate the Future Value using a Financial calculator as follows :

PV = $0

PMT = - $5,700

I = 10 %

P/YR = 12

N = 30 x 12 = 360

FV = ??

Therefore,

The Future Value (FV) will be $12,884.78

The Account balance will be $12,884.78 in 30 years.