You are to make monthly deposits of $450 into a retirement account that pays 10.

Question

You are to make monthly deposits of $450 into a retirement account that pays 10.7 percent interest compounded monthly.

If your first deposit will be made one month from now, how large will your retirement account be in 32 years? (Do not include the dollar sign ($). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

You are to make monthly deposits of $450 into a retirement account that pays 10.7 percent interest compounded monthly.

If your first deposit will be made one month from now, how large will your retirement account be in 32 years? (Do not include the dollar sign ($). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Explanation / Answer

that will be

450*[(1+r)^n -1]/(r)

here r = 0.107/12 = 0.0089167

and n= 32*12 = 384

putting these values

Annuity future value = 1475138.3

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